- The GBP/USD pair could resume its sideways movement in the short term.
- A new higher high activates further growth.
- The US and UK data could really shake the markets tomorrow.
The GBP/USD price is trading in the green at 1.1862 at the time of writing. The Pound took the lead as the USD slightly lost some ground.
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The bias remains bullish in the short term with further prospects of gains. Fundamentally, the greenback remains sluggish after mixed economic data in the previous week.
Today, the Public Sector Net Borrowing came in at 12.7B versus the 19.1B expected. Later, the US is to release the Richmond Manufacturing Index. The indicator is expected at -9 points versus -10 points in the previous reporting period.
Tomorrow, the economic data could really shake the markets. The UK Flash Services PMI could drop from 48.8 to 48.0 points, while Flash Manufacturing PMI is expected at 45.7 points versus 46.2 in the previous reporting period.
On the other hand, the US data could change the sentiment. The FOMC Meeting Minutes represent the most important event of the week. As you already know, the FED is expected to deliver only a 50 bps hike in December after the US reported lower inflation in October.
Furthermore, the US is to release the Flash Services PMI, Flash Manufacturing PMI, Durable Goods Orders, Core Durable Goods Orders, Unemployment Claims, New Home Sales, and Revised UoM Consumer Sentiment.
GBP/USD price technical analysis: Ranging
The GBP/USD pair moves sideways in the short term. The bias remains bullish as long as it stays above the up trendline. You can see that the rate failed to take out the 1.1790 support. This is seen as a strong downside obstacle.
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The pair is trapped between 1.1790 and 1.1958. Escaping from this pattern could bring new trading opportunities. A new higher high could activate an upside continuation. The 1.2 psychological level stands as an upside obstacle as well. On the contrary, failing to take out the static resistance levels could push the rate below the uptrend line. A valid breakdown and a new lower low may form a new leg down.
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