The GBP/USD pair is trading in the green at 1.3454 at the time of writing. The rate moves somehow sideways trying to accumulate more energy before moving up or down. In the short term, the upside pressure is high as the price action signaled that the downside is limited.
The United Kingdom Consumer Price Index registered a 4.2% growth versus 3.9% expected, while the Core CPI reported a 3.4% growth compared to 3.1% estimated. On the other hand, the Building Permits increased from 1.59M to 1.65M beating 1.63M expected, while the Housing Starts dropped unexpectedly from 1.53M to 1.52M, even if the traders have expected to see potential growth to 1.58M.
GBP/USD Technical Analysis!
The GBP/USD pair registered only a false breakdown with great separation below the ascending pitchfork’s lower median line (lml) and through 1.3411 static support. Now it challenges the weekly pivot point (1.3457). Closing and stabilizing above it may signal potential growth in the short term.
Making a valid breakout through 1.3483 could activate an upside movement towards the median line (ml) and up to the upper median line (UML). Only a valid breakdown below the ascending pitchfork’s lower median line (lml) could invalidate the upside scenario.
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