STERLING UPSIDE BREAKOUT UNDERWAY

The GBPUSD pair has performed a major technical breakout, breaking above the 1.3125 level, and rising to new 2017 trading highs, after Federal Reserve members raised concerns about persistently low U.S inflation, in the FOMC monetary policy statement.

As the U.S dollar index comes under continued downside pressure, the GBPUSD pair has traded as high as 1.3157 during the Asian session, moving the British pound to its highest level against the greenback, since September 2016.

In the longer term, sterling is now threatening a major upside technical breakout towards the 1.3300 and 1.3500 levels, whilst trading above the 1.3125 price region.

GBPUSD technical support is now found at the former 2017 trading high, at the 1.3125 level. Further support is located at the M5 time frame, 200 period moving average, at 1.3098, and the daily pivot point, at 1.3080.

To the upside, key technical resistance above the current daily price high, is found at the 1.3225 level, and the monthly time frame, 20 period moving average, at 1.3270.