GBP/USD Consolidates Ahead Of Break!

GBP/USD is drifting higher after retesting the 1.33 psychological level. A new higher high should validate more gains. The price consolidates in the short term, the outlook is bullish, so is expected to resume the current swing higher.

The UK's Final Manufacturing PMI could boost the pair if it comes better than expected and if the US data disappoints later today. The US ISM Manufacturing PMI is expected to drop from 59.3 to 57.9.

GBP/USD has tested and retested the 1.33 level and the Pivot Point (1.3321) level and now is trying to take out the R1 (1.3381) static resistance. Closing above the 1.3397 level signals further growth in the upcoming period towards the R3 (1.3514) and up to the third warning line (wl3).

Technically, the upside should continue if stabilizes above the channel's resistance line. The price has consolidated above 1.33 accumulating more bullish energy before moving towards fresh new highs.

A bullish closure above the 1.3397 suggests buying as GBP/USD will be expected to jump higher. The R3 (1.3514) could be used as an immediate upside target. A valid breakout above the warning line (wl3) will signal a larger increase.