- GBP / USD is looking for its next move up.
- An inverted shoulder-head-shoulder pattern confirmed on the 4-hour chart.
- The bullish crossover and a bullish RSI point to additional gains.
GBP / USD remains high ground as it looks to extend the advance above the 1.3700 level.
The pair hit multi-year highs at 1.3719 on the boost from US President Joe Biden’s stimulus, which benefited market optimism, and the UK’s successful attempts at a quick vaccination.
From a short-term technical perspective, the pair has confirmed a breakout of an inverted shoulder-head-shoulder pattern on the 4-hour chart, pointing to a test of the target measured above 1.3800.
Before that level, the high of 1.3719 could be retested. Acceptance above the latter level could cause price to head towards the round 1.3800 level.
The RSI is moving higher, now at the 65 level, which suggests that there is room for further rises. Meanwhile, the bullish crossover, represented by the 21 SMA above the 50 SMA, adds credibility to the additional rally.
On the other hand, the daily low of 1.3652 is the level to beat for the bears. The next significant support is around 1.3615, where the aforementioned moving averages coincide.
GBP / USD 4 hour chart
GBP / USD technical levels
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