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After reaching a new multi year high with a minor breakout yesterday, GBP/USD now clearly confirms the breakout and reaches a new high of 1.6715, above the 1.67 line.

The next important level of 1.6750 is getting closer, but the pair could take a break before moving to these levels last seen in 2009.

1.6750 was the peak in May 2011 and a break above this level will send the pair to 2009 levels. Further resistance appears at 1.6877 and the ultimate post crisis high of 1.7042 is the final frontier. On the downside, 1.6668, the previous high, turns into support, followed by 1.6618.

For more levels, analysis and events, see the GBPUSD forecast.

Here is how it looks on the chart. See the explanations for the move below:

GBP USD Breakout Valentines Day February 14 2014 technical chart for currency trading forex

Reasons for GBP/USD burst

General USD weakness across the board helps cable. EUR/USD is is flirting with 1.67 and USD/JPY remains below 102. This is not a “risk on” mood where the yen and dollar are sold off but rather a sell off of the greenback.

Weak retail sales numbers (including a downside revision) still weigh. For the pound, the echoes of the BOE Inflation Report provide support.

The Bank of England enhanced its forward guidance and made a small hint that rates could rise in the Q2 2015, accepting market expectations.

Will we see another move higher above 1.6750?