GBP/USD has decreased a little but this could be only a temporary decline. It could test and retest the immediate support levels before jumping higher. It’s trading in the red right now but it could turn to the upside anytime if the US Dollar Index drops further.
The UK Average Earnings Index and the Claimant Count Change have come in better than expected, but unfortunately, the Unemployment Rate increased unexpectedly from 4.7% to 4.8%. The US data could be decisive today, the Industrial Production, Capacity Utilization Rate, and the Unemployment Claims could shake the markets.
Technical Analysis!
GBP/USD dropped below the ascending pitchfork’s lower median line (lml) but the bias remains bullish as long as it stays above the outside sliding parallel line. It has retested the Falling Wedge’s broken resistance and now it seems undecided.
It moves sideways in the short term, developing a temporary range. Coming back within the ascending pitchfork’s body and making a valid breakout above the 61.8% could really signal an upwards continuation.
GBP/USD is located above strong support levels, so it could still increase. Also, we could still search for long opportunities as long as it stays above these levels. Only a valid breakdown below 78.6% (1.3795) could invalidate the bullish scenario.
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