GBP/USD increased as much as 1.4001 today approaching 1.4004 former high. Unfortunately, the pair erases the morning gains as the USDX started to increase again. As you already know, the FED has maintained its monetary policy after a 2-day meeting ended yesterday.
The greenback plunged after FED's remark that the interest rate could be kept steady until 2023. Still, the US dollar could increase again if the US data continues to come in better than expected in the upcoming period.
Today, GBP/USD could be moved by the BoE meeting, even if the Official Bank Rate and the Asset Purchases Facility are expected to remain on hold.
GBP/USD Moves In Range!
GBP/USD moves sideways 1.4 and 1.38 levels trying to accumulate more energy to be able to resume its major uptrend. Technically, it was somehow expected to increase after escaping from the Falling Wedge pattern.
The pair decreased in the short term searching for support. The bullish engulfing printed right on the 61.8% and above the S1 (1.3806) signals further growth. Now, is pressuring the 38.2% retracement level and the 1.4 psychological level.
Passing above these obstacles and registering a new higher high, stabilizing above the R1 (1.4010) represents a bullish signal. GBP/USD is traded above a major uptrend line, so the bias remains bullish as long as it stays above it.
Forecast & Tips!
Buy GBP/USD if it jumps and stabilizes above the R1 (1.4010) and use 1.4240 higher-high as a target.
A false breakout with great separation above 1.4 or a major bearish engulfing on this level could send the rate down towards 1.38. A great selling opportunity will be signaled by a valid breakdown through the uptrend line.
