Pound Bulls make their move

GBP/USD has rallied 200 pips reaching a 7 week high.

We have been awaiting this breakout since the bullish wedge formation formed earlier in the month.

This mornings UK jobs figures beat forecast providing further support for the pound.

Price is currently trading just below critical resistance at 1.4000 well above 50.100 & 200 MA as bulls remain in control.

It looks like the retracement from the higher time frames is over, a breach of resistance could see sterling continue the rally towards resistance level 2 at 1.4090, which would coincide with price re-entering the previous 7 month uptrend.

In the opposite direction there has been a slight pick up in the Dollar & resistance at 1.4000 has previously proven stubborn.

RSI on the 4HR is showing price is over bought which may also cap gains.

Support: 1.3890 - 1.3800
Resistance: 1.4000 - 1.4090