The GBP/USD pair is trading in the red at 1.2733 at the time of writing. In the short term, the price jumped higher even if the US Dollar Index is strongly bullish. It remains to see how it will react as the USD could take the lead again if the Dollar Index extends its growth.
Yesterday, the UK and the US reported mixed data. Today, the British Pound jumped higher after the UK reported higher inflation. The CPI reported a 6.8% growth beating the 6.7% growth estimated, while Core CPI increased by 6.9% exceeding the 6.8% growth estimated. On the other hand, the US data came in mixed again. Still, the FOMC Meeting Minutes could really shake the markets later.
GBP/USD Leg Higher!
Technically, the GBP/USD pair is trapped between 1.2792 and 1.2620 levels. It has turned to the upside after registering a false breakdown with great separation below the 1.2620 support.
It has rebounded within an up channel. As long as it stays above the uptrend line, the pair could extend its growth.
GBP/USD Forecast!
Dropping and closing below the uptrend line and under 1.2718 activates a downside movement. This is seen as a selling opportunity.
On the contrary, staying above the uptrend line and making a new higher high activates further growth.
