The GBP/USD pair is breaking the 1.3882 level as the Dollar finds demand ahead of morning opening. Pound also continues to strengthen against other currencies, with continuing gains since last week.
Last week, the GBP/USD pair broke the resistance that turned into strong support at the level of 1.3882 yesterday. The level of 1.3882 coincides with a golden ratio (61.8% of Fibonacci), which is expected to act as a major support on the M30 chart today.
Consequently, the first support is set at the level of 1.3882. Moreover, the RSI starts signaling an upward trend, and the trend is still showing strength above the moving average (100).
Since the trend is above the 61.8% Fibonacci level, the market is still in an uptrend. Therefore, the GBP/USD pair is continuing with a bullish trend from the new support of 1.3882. The current price is set at the level of 1.3882 that acts as a daily pivot point seen at 1.3882.
Hence, the market is indicating a bullish opportunity above the area of 1.3882. So, the market is likely to show signs of a bullish trend around 1.3882 - 1.3800. Equally important, the price is in a bullish channel.
In other words, buy orders are recommended above the ratio of 61.8% Fibonacci (1.3882) with the first target at the level of 1.3948 in order to test a double top at the same time frame.
If the pair succeeds to pass through the level of 1.3948, the market will probably continue towards the next objective at 1.3970.
In case of a successful breakout, the next target will be at the level of 1.3990 (R3).
However, the daily strong support is seen at 1.3861. Thus, if a breakout happens at the support level of 1.3861/1.3841, then this scenario may be invalidated.