The GBP/USD pair edged higher after retesting the immediate support levels. The rate turned to the upside as the Dollar Index dropped. The DXY escaped from a minor upward channel which represents a bearish pattern. Technically, the USD's depreciation is natural, but it remains to see how it will react to the US inflation data.
As you already know, the US is to release its Consumer Price Index later. It is expected to rise by 0.4%, while the Core CPI may register a 0.5% increase. Unemployment Claims are expected at 227K.
GBP/USD To Challenge The Downtrend Line!
GBP/USD found support on the weekly pivot point (1.3513) and now, it has almost hit the downtrend line. As long as it stays below the downtrend line, the price remains under pressure. Only a valid breakout above it may signal an upside continuation.
Actually, a valid breakout above the downtrend line could bring fresh long opportunities. Its false breakdown with great separation below the 1.3500 psychological level signaled strong demand zone.
GBP/USD Outlook!
The GBP/USD pair is bullish, it remains to see how it will react around the downtrend line. A valid breakout above the downtrend line could announce potential further growth towards the ascending pitchfork's median line (ML). Only jumping and stabilizign above the median line (ML) could confirm a larger growth.
On the other hand, a false breakout above the downtrend line followed by a new lower low could announce a strong sell-off.
