The GBP/USD pair increased as much as 1.3273 today as the Dollar Index plunged weakening the USD. Now, it's trading at the 1.3251 level and it seems determined to resume its growth. Fundamentally, the British Pound received a helping hand from the Uk CBI Industrial Order Expectations which was reported at 26 points above 16 points expected.
Tomorrow, the UK is to release its inflation data. The CPI could report a 6.0% growth in February versus 5.5% in January, while the Core CPI may register a 5.0% growth
GBP/USD Larger Rebound!
GBP/USD tested and retested the ascending pitchfork's median line (ml) confirming it as a strong dynamic support. 1.3160 - 1.3194 represented a significant resistance area. Breaking above signaled strong buyers and potential upside continuation.
Now, it has passed above the ascending pitchfork's upper median line (uml) and above the weekly R1 of 1.3250. Validating its breakout above these obstacles may signal more gains.
GBP/USD Outlook!
After its amazing rally, a temporary consolidation or retreat is natural Stabilizing above the R1 may signal further growth towards 1.33 psychological level and up to the upper median line (UML).
