GBP/USD Technical Analysis: Likely to rise above 1.420 as GBP strength continues

The price of GBPUSD has been enjoying some bull run lately amid the GBP strength and the US dollar weakness.

The monthly GDP, Industrial Production, Manufacturing Production, and Industrial output all came out positive for GBP last week. The US dollar on the other hand is still weak as inflation hits the US, and all other currencies are taking massive advantage of the US dollar weakness.

The non-commercials i.e. banks are adding more long positions to their GBP position compared to the short positions they added. 12, 685 more long positions were added by the banks, according to the Commitment of Traders (COT) report.

Technically, the 50-day moving average is still pointing in the upward direction and way above the 200 moving average. The 50-day MA was also used as support during the New York session on Thursday, but it quickly rejected the price towards the recent high.

Last week's highest price level was 1.4167 according to the data received from TradingView, and the lowest price is 1.3992, but the weekly candle closed at 1.40886, which is far above the weekly opening and closing price.

If the bulls successfully break the recent high of 1.4167, 1.4200 psychological level will be the first target before breaking the February high. With an increase in the volume of buyers as the price approaches the recent high, GBPUSD could create a new high for the year.

Note: Trading this pair should be approached with caution, and a proper risk management approach should be used as this pair can be quite volatile.