GBPUSD FURTHER BULLISH ABOVE 1.3400 LEVEL

The British pound has moved sharply higher against the greenback, following a stronger than expected UK Construction PMI and a reversal lower in the value of the US dollar index. The GBPUSD pair currently trades close to the key 1.3400 resistance level, with bullish trading momentum building across medium-term RSI and Stochastic indicators. Traders now await the release of US Factory Orders data and the intraday direction of the US dollar index.

• The GBPUSD pair is strongly bullish while trading above the 1.3400 level, key resistance is located at the 1.3450 and 1.3490 levels.

• If GBPUSD buyers fail to move price above the 1.3400 level, key technical support is found at the 1.3340 and 1.3300 levels.