Much as we anticipated, the 1.37 - 1.38 support area held off the retracement, and GBPUSD is now breaking to the upside. The acceleration came after this morning’s breakout above the falling retracement trendline (around the 1.3850 level).

The 1.40 level is now within reach, where cable should meet the next resistance zone. However, while 1.40 is an important psychological level, it’s questionable if it will prove a pivotal resistance zone in the current context. Specifically, there is no other technical factor to aid the resistance here, so the pair may as well go a tad higher before encountering a stronger pushback.

Above 1.40, traders will have their eyes on the 1.42 area and the February highs. If the bulls go through 1.40 easily, then the big resistance will probably be waiting at this 1.42 area