- GBP / USD breaks consolidation to the upside, focus is on 1.38.
- GBP / USD confirms a breakout of the bullish pennant on the 1 hour chart.
- The RSI remains flat, but remains well above the midline.
GBP / USD is looking to extend its breakout to the 1.3800 level, with the bulls likely meeting initial resistance at the 200 hourly moving average at 1.3779.
The upside bias looks more compelling as GBP / USD has broken a bullish pennant on the 1 hour chart, after a sustained break above trend line resistance at 1.3709.
The RSI remains flat but comfortably above the midline, which suggests there is more room to the upside.
An impending bullish crossover, with the 21 SMA poised to cut the 100 SMA from below, also adds credibility to the move up.
GBP / USD 1 hour chart
On the other hand, a sustained break below 1.3705 would invalidate the bullish continuation pattern, opening the door to a bearishly sloping 100 SMA test at 1.3698.
The psychological level of 1.3650 will be the next target for sellers.