GBP/USD moves sideways in the short term trying to attract more buyers before jumping higher. It stands at 1.3755 level below a dynamic resistance. Making a valid breakout brings a good long opportunity.
The DXY seems overbought again. The index is trading in the red at 92.84, a deeper drop weakens the dollar. The US is to release the New Home Sales, the indicator is expected to increase from 769K to 800K but I don't think that will have a significant impact.
FOMC meeting is seen as a major and high-impact event during the week. The traders are expecting a potential hint that the FED could take action after rising inflation in the US.
GBP/USD Accumulates More Bullish Energy!
GBP/USD is located under the second warning line (wl2) of the descending pitchfork. It stays above the ascending pitchfork's median line (ML) signaling a breakout attempt. A valid breakout could really announce a larger growth in the short term.
GBP/USD could increase ahead of the US high-impact events. Hawkish FOMC and better than expected Advance GDP could really help the USD to take the lead again. The upside scenario could be invalidated only if the pair stands under the second warning line (wl2).
Forecast!
Jumping and closing above the warning line (wl2) followed by a new higher high, closing above 1.3787, represents a buying signal. The R2 (1.3915) and the upper median line (UML) are seen as upside targets.
