GBP/USD rallies and is about to hit the dynamic resistance. A valid breakout could bring a great long opportunity even if the pair is traded higher. The next few hours are critical as the US is to release some economic data, while GBP/USD is located within a strong resistance area.
The US Goods Trade Balance could drop further from -80.3B to -81.5B. The preliminary data on the Wholesale Inventories could register a 0.7% growth, while the Chicago PMI is expected to drop from 58.2 to 56.6 points. Moreover, the Pending Home Sales could increase by 0.1% versus a 1.1% drop in the previous reporting period.
Fundamentally, some poor US data could boost GBP/USD. Personally, I do not think that better-than-expected figures could change market sentiment. Only a strong rebound in USDX could announce the greenback's appreciation versus its rivals.
GBP/USD Breakout Attempt
GBP/USD has retested the Pivot Point (1.3446) level and is now challenging the fourth warning line (wl4). Registering a valid breakout suggests buying as the price should move towards fresh new highs.
A stronger upside movement will be validated by a new higher high and a bullish closure above the 1.3624 level.
Forecast & Tips
Buy a bullish closure above the 1.3624 level and use the R1 (1.3704) and the R2 (1.3878) levels as upside levels. The Stop Loss should be placed under 1.3429 former low.
