Overview:
The GBP/USD pair will be continuing to rise from the level of 1.2985 in the long term. It should be noted that the support is established at the level of 1.2985 which represents the 23.6% Fibonacci retracement level on the H4 chart.
So, the strong support has been already facing at the level of 1.2985 and the pair is likely to try to approach it in order to test it again.
Consequently, the GBP/USD pair is continuing to trade in a bullish trend from the new support level of 1.2985 so as to form a bullish channel.
According to the previous events, we expect the pair to move between 1.2985 and 1.3362. Also, it should be noted major resistance is seen at 1.3362, while immediate resistance is found at 1.3168. Then, we may anticipate potential testing of 1.3168 to take place soon.
Moreover, if the pair succeeds in passing through the level of 1.3168, the market will indicate a bullish opportunity above the level of 1.3168. A breakout of that target will move the pair further upwards to 1.3362.
Equally important, the RSI is still calling for a strong bullish market as well as the current price is also above the moving average 100.
Briefly, buy orders are recommended above the area of 1.2985 with the first target at the level of 1.3168; and continue towards 1.3362. On the other hand, if the GBP/USD pair fails to break out through the resistance level of 1.2985; the market will decline further to the level of 1.2759 (daily support 2).
The material has been provided by InstaForex Company – www.instaforex.com
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