GBP/USD trades at 1.4084 level and seems poised to approach and reach 1.4100 psychological level. The price is located in the buyer's territory, so the outlook remains bullish despite any minor drop.
The pair increased as expected. I've told you in my previous analysis that GBP/USD will continue to trade north if it takes out the immediate resistance levels. UK Claimant Count Change and Average Earnings Index lifted the GBP even if the Unemployment Rate increased to 5.1% as expected.
Later in the day, the US is to release the CB Consumer Confidence which is expected to increase from 89.0 to 90.0 points but is hard to believe that will change the sentiment, which is bullish.
GBP/USD Upside Continuation!
If you remember from my analyses, GBP/USD was expected to resume its growth after closing and stabilizing above the seventh warning line (wl7). The price reached the R1 (1.4080) static obstacle, target, and now is trying to stabilize above.
Yesterday's rally up to 1.4086 represented a bullish signal. Personally, I believe that the upside scenario is safe as long as GBP/USD is traded above 1.4 psychological level. Stabilizing above the R1 (1.4080) and closing above 1.4100 signals more gains ahead.
The R2 (1.4161), the eighth warning line (wl8), and the R3 (1.4286) are seen as the next upside targets.
Jumping and closing above 1.41 represents a long signal with an immediate upside target at the R2 (1.4161) level. The upside bias will be safe as long as GBP/USD is traded above 1.4.