The GBP/USD pair is trading in the green at 1.2273 at the time of writing and it seems determined to approach and reach new highs. The Dollar Index's current sell-off forced the USD to lose significant ground versus its rivals.
Fundamentally, the UK Rightmove HPI reported a 1.7% drop, while CB Leading Index dropped by 0.4%. Tomorrow, the UK is to release the Claimant Count Change, Average Hourly Earnings, and Unemployment Rate.
Still, only the US economic data could be decisive. The US CPI may announce a 0.1% growth, while Core CPI could report a 0.3% growth. Lower inflation in October versus September could weaken the greenback.
GBP/USD Retreat Seems Over!
Technically, the GBP/USD pair found support on the 61.8% (1.2206) retracement level and now it has turned to the upside.
It has escaped from the down channel signaling a new leg higher. Now, it has taken out also the 50% (1.2248) and the median line (ml) of the ascending pitchfork which represented key resistance levels.
GBP/USD Outlook!
Breaking and closing above the median line (ml) activated further growth and was seen as a new buying opportunity. Coming back to test and retest the median line (ml), consolidating above this line brings new longs. The upper median line (uml) stands as a potential target.
