The GBP/USD pair ended its temporary drop and now it has turned to the upside again. Still, a larger growth needs strong confirmation. Surprisingly or not, the rate jumped higher, even though the Dollar Index rebounded in the short term. The currency pair closed the previous week at 1.1613.
The price edged higher despite some positive data reported on Friday. Core PCE Price Index, Employment Cost Index, and Personal Income came in line with expectations, while Personal Spending and Revised UoM Consumer Sentiment reported better than expected data.
Today, the US is to release the Chicago PMI and the Loan Officer Survey, while the UK publishes the Net Lending to Individuals, Mortgage Approvals, and M4 Money Supply. Still, the FOMC, BOE, and the US NFP could really shake the markets during the week.
GBP/USD Retreat Ended!
As you can see on the H1 chart, the rate failed to retest the 1.1495 static support and now is almost reaching the 1.1645 resistance. As long as it stays above Friday's low of 1.1503, GBP/USD could resume its growth.
Technically, after escaping from the extended range between 1.1156 and 1.1409, GBP/USD signaled a larger swing higher.
GBP/USD Prediction!
A new higher high, a bullish closure above 1.1645 brings long opportunities as the rate should extend its growth. The 1.1904 and 1.1958 historical levels represent potential upside targets.
