GBP/USD rallied in the short term after invalidating a larger corrective phase. The pair is trading at 1.3993 level and it could continue higher as long as the USDX continues to drop. In the short term, the pair could retreat a little after reaching a static resistance.
The pound received a helping hand from the UK Claimant Count Change and Unemployment Rate today. The economic indicators have come in better than expected indicating that GBP/USD could resume its upside journey.
GBP/USD Turned To The Upside!
GBP/USD failed to make a valid breakdown below the 1.3673 level invalidating a further decline. The upside breakout from the down channel signaled that the pair will be expected to resume its major uptrend.
As you can see on the H4 chart, GBP/USD has failed to stay below the red uptrend line, so further growth is natural. Now is pressuring 1.3998 static resistance. Jumping and stabilizing above it could validate more gains.
The aggressive breakout through 1.3918 former high represented a long opportunity. Consolidating above 1.3998 static resistance could bring a new buying opportunity with an important upside target at 1.42.