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  • The GBP/USD pair escaped from the Falling Wedge pattern, so an upside movement is natural.
  • A new higher high could activate a larger upwards movement. 
  • Its failure to reach the weekly S1 signalled a fresh bullish momentum.

Our GBP/USD forecast sees the pair rally today and it seems determined to attempt and reach new highs. The price action signalled an oversold situation, so a throwback is natural. In the short term, the currency pair rallied as the Dollar Index dropped, weakening the USD.

Still, the DXY is trapped within a symmetrical triangle, anything could happen, that’s why we have to wait for a valid breakout from the current pattern.

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From the technical point of view, the Dollar Index maintains a bullish bias despite today’s drop. An upside continuation could force the greenback to dominate the currency market again.

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Fundamentally, the British Pound received a helping hand from the UK data today. The Unemployment Rate dropped from 4.3% to 4.2% as expected, the Claimant Count Change was reported at -49.8K below -31.5K expected, while the Average Earnings Index registered a 4.9% growth versus 4.6% expected. The BC Leading Index will be released later today.

The GBP/USD pair is bullish in the short term, but it remains to see how it will react later after the US will publish its PPI and the Core PPI. The Producer Price Index could report a 0.5% growth versus 0.6% in the previous reporting period, while the Core PPI is expected to register a 0.4% growth in November. 

GBP/USD Forecast: Price Technical Analysis – Falling Wedge

gbp/usd forecast 

The GBP/USD pair failed once again to stabilize under the 1.3201 level, below the 1.32 psychological level, and now it seems determined to come back higher. The rate escaped from a Falling Wedge pattern signaling an upwards reversal in the short term. As you can see, the price has dropped a little trying to retest the broken downtrend line, the pattern’s resistance. 

Its failure to reach the weekly S1 (1.3188) or to close below 1.3201 announced a new bullish momentum. Now, it tries to stabilize above the weekly pivot point (1.3239). A larger upwards movement could be activated by a valid breakout above the 1.3275 former high. 

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