FX.co ★ GBPUSD upside potential is at 1.42 if bulls break above 1.37

GBPUSD is trading at 1.3567. Short-term trend is unclear after the top at 1.3747 and the pull back towards 1.3350. Price has formed a higher low at 1.3356 and is now moving higher. The corrective pull back might still be not over and a new lower low below 1.3356 is still in play.

Black line - resistance

Blue line - support

Yellow rectangle- break out area to produce bullish signal

Blue rectangle- target if price breaks out of the yellow area

GBPUSD is trading below key resistance trend line and key resistance area shown by the yellow rectangle. Breaking above this area will produce a bullish signal and then our target will be at the blue rectangle area around 1.42. In other words if bulls recapture 1.37 and stay above it, we should then see a push higher towards 1.42. Short-term support is at 1.3356 and next at 1.3290. The 1.3356 level is also the 61.8% Fibonacci retracement of the upward move from 1.3167 low. Bulls do not want to see price break below this level. It will be a sign of weakness.