GBP/USD edged higher in the short term as expected after yesterday's upside breakout. The price has reached a strong dynamic resistance, so the upwards movement was paused, for now.
The pair is strongly bullish despite the minor retreat, another higher high, and a valid breakout above the immediate upside obstacles signals further gains. USD could depreciate further if the USDX will reach new lows.
Today, the US is to release the Unemployment Claims indicator which is expected to drop from 898K to 860K in the previous week. The CB Lending Index and the Existing Home Sales will be released as well. Some poor figures will boost the GBP/USD, while better than expected data could bring only a temporary decline.
GBP/USD is trading within an up channel between the lower median line (LML) and the median line (ML). The bias will remain bullish as long as the rate stands within this ascending pitchfork's body.
I told you in yesterday's analysis that the pair should approach and reach the median line (ML) if it continues to increase. The aggressive breakout above the upper median line (uml) of the descending pitchfork and beyond the R1 (1.3044) confirmed further growth.
- GBP/USD Conclusion and Tips
A valid breakout above the R1 (1.3174), and above the median line (ML) should bring a great long opportunity. Also, R1 (1.3044) and LML retest, false breakdown with great separation could offer us a buying opportunity.
I believe that a selling opportunity will be validated only by a drop under 1.2862 static support. It's premature to talk about this scenario as long as GBP/USD is traded far above this level.
