FX.co ★ GBP/USD: Attention On Break Above 1.34

GBP/USD is trading in the red at 1.3370 on the H4 chart, but the bias is bullish and it could raise again anytime again. It could only retest the near-term support levels before going for another higher high.

Technically, the pair has ignored some critical and strong upside obstacles, so more gains are expected soon. USDX's drop after yesterday's mixed US data helped the Pound to take the lead again.

GBP/USD Set To Trade Higher!

GBP/USD has registered a valid breakout from the up channel, above the upside line, the warning line (wl2), and through the R1 (1.3341) signaling an extended upside movement.

The swing higher should resume it the pair jumps and stabilizes above the R2 (1.3400) psychological level. The price has tested and retested the 1.3300 broken psychological level, so the bias will be bullish as long it stays above this static support.

• GBP/USD Trading Scenario

We'll have a long opportunity if GBP/USD closes above the 1.3400 psychological level. The immediate target is seen at the R3 (1.3488) level. A new higher high signal further growth towards the third warning line (wl3).