The GBP/USD pair rallied in the last hours and now is located at 1.2449 at the time of writing. After its last rally, the price retreated a little in the short term which was natural. Now, the Dollar Index crashed again, weakening the USD.
Fundamentally, the USD took a hit from the US economic data. The Unemployment Claims came in at 231K in the last week versus 221K expected, Industrial Production reported a 0.6% drop versus 0.4% estimated, while Capacity Utilization Rate came in at 78.9% below 79.4% forecasted.
GBP/USD Correction Ended!
As you can see on the H1 chart, the GBP/USD pair ended its correction at 38.2% (1.2383) and now it has escaped from the flag pattern (bullish formation).
Now, it has jumped above the 23.6% retracement level (1.2429) and it is challenging the former high of 1.2452. This represents an upside obstacle.
GBP/USD Outlook!
Jumping and closing above 1.2452 activates more gains ahead and is seen as a buying opportunity. A larger growth could be activated if the rate jumps and stabilizes above the 1.2500 psychological level.
