The British Pound has rallied after the MPC officials voted to maintain the interest rate steady at 0.75% at yesterday's policy meeting. The 0-2-7 unexpected vote boosted GBP/USD which surged to as high as 1.3109.
The Asset Purchase Facility remains unchanged at 435B, the members voted unanimously for this decision. GBP/USD managed to jump higher also because the US Advance GDP Price Index disappointed a little as the indicator increased only by 1.4%, much worse than the 1.8% estimate.
GBP/USD maintains a bullish outlook, but we still need a confirmation that the price will resume the upside movement. The price is trapped within a major symmetrical triangle, so only a valid breakout from this extended sideways movement will confirm a broader momentum.
As I said on Wednesday, the pair may have a bullish momentum after the price has reached and retested the pattern's support and the upper median line (UML) of the major descending pitchfork.
Technically, GBP/USD is somehow expected to make a valid breakout above the symmetrical triangle's resistance and to climb towards the 1.3514 high as the price has failed to reach the median line (ML) of the descending pitchfork.
We have a bullish outlook on GBP/USD as long as the price stays above the 1.2952. Right now, it has broken above the sliding parallel line (SL) signaling strong buyers.
- Trade Setup
A valid breakout from this significant chart pattern will give us a great chance to open a long position with a potential target in the 1.3500 - 1.3514 area. Stop Loss should be placed below the 1.2975 low.
I believe that only a false breakout above the downtrend line (triangle's resistance) could push the price down again. So, you should wait for a valid breakout before taking any trading decision.
