FX.co ★ GBP/USD Extends Its Swing Higher! Where Is The Next Upside Target?

GBP/USD registered an amazing rally in the short term. It stands at the 1.3959 level and it seems strong enough to resume its growth. Technically, the upside movement is far from being confirmed. We could still search for new long opportunities if GBP/USD retreats a little.

The pair has continued to increase as the Dollar Index plunged in the short term after escaping from a Rising Wedge pattern. The USD bulls were disappointed after the FOMC, that's why the greenback is into a corrective phase versus all its rivals.

The Federal Reserve maintained its monetary policy unchanged in yesterday's meeting as expected.

GBP/USD More Gains Expected!

GBP/USD has registered an important growth after closing above the second warning line (wl2) of the descending pitchfork. Also, breaking above the weekly R1 (1.3828) signaled that further upside movement.

Now it has ignored another upside target, obstacles, represented by the ascending pitchfork's upper median line (UML). Stabilizing above this broken dynamic resistance and above the R2 (1.3916) validates more gains ahead.

Conclusion!

A minor consolidation above the UML or retesting this dynamic support could bring us a great buying opportunity. The next upside target is seen at the weekly R3 (1.4044) level, while the second upside obstacle stands at the warning line (WL1).