GBP/USD rallied but it has reached strong dynamic resistance again. The pair has retested a static support today and now it looks determined to jump higher again. We still have to wait for confirmation before deciding to go long.
The bias is bullish, so the current sideways movement could bring new long opportunities. The Pound has increased versus the greenback as the DXY has slipped lower weakening the dollar. Also, the GBP was helped by the BoE which has maintained its monetary policy unchanged in today’s meeting.
Worse than expected US Unemployment Claims and Trade Balance helped the price to increase. Some poor figures reported by the NFP, Unemployment Rate, and by the Average Hourly Earnings could really punish the greenback.
GBP/USD Within A Range!
GBP/USD challenges the upper median line (UML) of the ascending pitchfork. Closing above it and making a new higher high could validate further growth. Today’s false breakdown with great separation below the weekly pivot point (1.3874) signaled strong buyers.
Jumping and closing above 1.3957 high could represent a bullish opportunity. The warning line (WL1) is seen as a major upside target.
The upside scenario could be invalidated by a new lower low, by a drop below 1.3872 today’s low.