GBP/USD rallies at the time of writing as the US Dollar Index drops again. It remains to see how the price will react in the coming hours as the pressure is still high. The pair failed to stay above strong resistance levels, so we have to wait for a confirmation before going long on GBP/USD.
The Pound dropped, even though the UK inflation data has come in line with expectations. It's premature to talk about a long or a short position on GBP/USD. The pair is trading within a neutral zone.
GBP/USD Bullish Movement!
GBP/USD failed to stabilize above 1.4177, R1 (1.4173), and beyond the second warning line (WL2). Only a valid breakout above the WL2 and through the 1.4200 psychological level could really announce further growth.
This could still be a temporary decline if it stays above the weekly pivot (1.4083). Dropping and stabilizing below the pivot point indicates a deeper decline towards the 1.3998 level.
Forecast!
Passing above 1.4177 again and closing beyond 1.42 psychological level could indicate a further growth towards 1.43.
Closing below 1.4100 yesterday's low signals a drop below the weekly pivot point (1.4083) level.
