The GBP/USD pair set above strong support at the level of 1.3896, which coincides with the 50% Fibonacci retracement level.
This support has been rejected for four times confirming uptrend veracity. Hence, major support is seen at the level of 1.3896 because the trend is still showing strength above it.
Accordingly, the pair is still in the uptrend from the area of 1.3896 and 1.3861. The GBP/USD pair is trading in a bullish trend from the last support line of 1.3896 towards the first resistance level at 1.4008 in order to test it.
This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 1.3896 and further to the level of 1.4008.
The level of 1.4008 will act as first resistance and the double top is already set at the point of 1.4008.
The GBP/USD pair is continuing to trade in a bullish trend from the new support level of 1.4008; to form a bullish channel.
According to the previous events, we expect the pair to move between 1.4008 and 1.4103. Also, it should be noted major resistance is seen at 1.4103, while immediate resistance is found at 1.4008. Then, we may anticipate potential testing of 1.4103 to take place soon.
At the same time, if a breakout happens at the support levels of 1.3861, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.
Daily key levels
- Major resistance : 1.4060
- Minor resistance : 1.4008
- Intraday pivot point : 1.3896
- Minor support : 1.3861
- Major support : 1.3784
