The pair is driven by strong buyers in the short term, it has managed to take out a major confluence area suggesting further growth. GBP/USD is traded at 1.2974, the next upside target is represented by the 1.3000 psychological level.

It remains to see what will happen in the US session, after the FOMC, and after more economic data will be released, but technically, GBP/USD is expected to climb way higher in the short term after taking out all the upside obstacles.

GBP/USD has broken above the confluence area formed at the intersection between the warning line (WL1) with the median line (ML) confirming an extension of the current rally. The aggressive breakout signals a sharp increase in the short term, the upside targets are at the R2 (1.3050) level, and at the 250% Fibonacci line.

Now, only a bearish engulfing could invalidate a further upside momentum and it could signal a minor drop.

• GBP/USD Trading Tips

The last bullish candle has confirmed strong buyers and a potential bullish movement. You can buy GBP/USD if the price jumps above 1.2976 high, the first target will be at the R2 (1.3050) level, the 250% Fibonacci line could attract the price as long as it stays above the broken median line (ML).

GBP/USD has failed to jump above the median line (ML) in the last weeks, that's why the current breakout could bring a larger upwards movement.