GBP/USD moved sideways trying to attract more buyers before breaking above the 1.3758 former high. The price is located above the broken resistance levels, so further growth is possible.
The pair escaped from a continuation pattern. A new higher high could bring a new trading opportunity. Today, the US ISM Manufacturing PMI, Final Manufacturing PMI, and the UK's Final Manufacturing PMI could become decisive.
Poor US economic figures could send GBP/USD higher. Technically, the outlook is bullish, the pair needs only a fundamental bullish spark.
GBP/USD Continuation Pattern!
GBP/USD tested and retested the fifth warning line (wl5) and the channel's upside line. Now it could continue moving higher. Closing above the R1 (1.3762) may activate further growth towards the sixth warning line (wl6).
Personally, I believe that the upside scenario could be invalidated only by a drop under the S1 (1.3613) level.
Trading Tips!
We'll get a bullish signal if GBP/USD closes above the R1 (1.3762) level. An upside breakout could send the rate towards the R2 (1.3835), or higher aiming the R3 (1.3912).
Selling will be possible from below the S1 (1.3613) level. Thus, a downside movement from here followed by such a breakdown will signal a bearish reversal.
The material has been provided by InstaForex Company - www.instaforex.com