FX.co ★ GBP/USD Aims At Higher Targets!

GBP/USD grew to 1.4005 today. It could jump even higher if the US dollar index declines. The pair is rising as we forecast after breaking above the resistance levels.

The pound sterling edges higher again as the UK's inflation data have beaten expectations. The pair stays higher even despite the US Retail Sales dropped by 8.2% in January as reported earlier today.

GBP/USD is likely to rise as the UK's Flash Services PMI increased from 39.5 to 49.7 points, while the Flash Manufacturing PMI rose surprisingly from 54.1 to 54.9 points. On the other hand, the US Flash Manufacturing PMI and Flash Services PMI will be released as well, but I do not believe that will change the sentiment.

GBP/USD Almost To Reach New Targets!

GBP/USD is trading at 1.4003. It is about to reach the seventh warning line (wl7), which is seen as a dynamic upside obstacle, target. The price has decreased a little from above the R1, but the major bullish engulfing printed on the minor ascending pitchfork's upper median line (UML) confirmed a further growth ahead.

Now, it is pressuring the R2 (1.3982) and the ascending pitchfork's warning line (wl1). Closing above these obstacles could bring a breakout through the seventh warning line (wl7) of a major descending pitchfork.

Personally, I believe that the upside bias remains intact as long as the GBP/USD pair will be traded above the ascending pitchfork's median line (ml). Jumping above wl7 and retesting this line could bring a long opportunity and could validate further growth ahead.

Forecast!

Yesterday's rally represented a bullish signal. Consolidation above 1.3945 is seen as an upside signal. Buying will be possible if the price closes above 1.4008 or above the seventh warning line (wl7).

A valid breakout above the wl7 could announce a broader growth towards the 1.41 and 1.42 levels.