GBP/USD is trading in the green at 1.3905 level pressuring a resistance area. An upside valid breakout could signal that the pair will resume its upwards movement. The price has moved somehow sideways in the short term after escaping from a continuation pattern trying to accumulate more bullish energy.
The downside seems limited, that's why we could search for long entries. The volatility could grow in the coming hours as the BoE is to release its Official Bank Rate and the Asset Purchase Facility.
The Bank of England is expected to keep its current monetary policy after today's meeting. GBP/USD could register strong movements after the UK Final Services PMI and after the US will publish its Unemployment Claims.
GBP/USD Upside Breakout!
The bias is bullish after GBP/USD's failure to retest the former downtrend line and maybe to approach the weekly S1 and the descending pitchfork's median line (ML). Now is back above the weekly pivot (1.3865) and beyond the descending pitchfork's upper median line (UML).
The 1.3918 and the outside sliding line (SL) represent strong resistance levels. A valid breakout above these obstacles and closing above the weekly R1 (1.3927) could really signal further growth.
Forecast!
Buy GBP/USD if it jumps and closes above 1.3931 high, after making a valid breakout above the SL, 1.3918, and through the R1. The R2 (1.4039) could be used as an upside target.
The material has been provided by InstaForex Company - www.instaforex.com