FX.co ★ GBPUSD in bullish trend

GBPUSD made a high at 1.3984 today just 16 pips of our 1.40 target given some time ago. In all our previous posts we mentioned what bulls must respect in order to reach our 1.40 target. Now that we have achieved this target we aim higher but we also be prepared to protect our long positions.

Red line - horizontal support and breakout area

Blue lines- expected size of upward move after break out

GBPUSD continues making higher highs and higher lows. In the Daily chart the RSI is also making higher highs and does not provide a bearish divergence. Staying above the green upward sloping support trend line is key for the bullish trend. Short-term support is found also at recent low at 1.3775. Taking profits when reaching a target is never a bad idea even if the trend continues higher.