Strong rally on the Pound

The possibility of the Bank of England modifying its monetary policy has boosted the Pound to the upside, along with the Brexit negotiation advances. On the daily chart of the GBP/USD we can see that the pair has broken above the 1.4000 level and came very close to the 1.4100 level to pull back a little bit to the 1.4041 level where we can find its 200 week EMA. The GBP/USD had a sustainable bearish trend or correction, but at the beginning of March the pair started to rally again and it is possible that it has come back to its bullish trend. However, in order for the bullish trend to be sustainable, the price must break above the 1.4300 level where we can find the 55 month EMA. On the other hand, we must keep in mind that the round number levels at 1.4100 or 1.4200 could act as resistances. Below the 1.3900 level, the price of the GBP/USD would be breaking the current bullish trendline and it is possible to see a breakdown of the 55 day EMA to go back to its bearish trend. The 1.3700 level would be its most relevant support in the mid-term.