- The GBP/USD pair rebounded after registering a new false breakdown below the 1.32 psychological level.
- The US data could be decisive later today, better than expected figures could boost the USD.
- Only a valid breakout above the upper median line (UML) could really activate a larger upwards movement.
Our GBP/USD forecast sees the pair rising as much as 1.3281 level today, where it has found resistance. It has rallied in the last hours but it continues to stay below a strong static resistance level. It remains to be seen what will really happen as the United Kingdom reported worse than expected data earlier.
The British Pound could lose ground versus its rivals in the short term. On the other hand, the USD remains strong as the DXY could resume its uptrend anytime after the current consolidation.
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The British Pound taken a hit from the UK Final GDP which registered a 1.1% growth versus 1.3% expected in Q3, the Current Account dropped from -8.6B to -24.4B below -15.8B estimates, while the Revised Business Investment registered a 2.5% drop even if the specialists expected a 0.4% growth.
The United States economic data could be decisive later today. The Final GDP could report a 2.1% growth rate, the Existing Home Sales could register a significant growth from 6.34M to 6.55M, while the CB Consumer Confidence could come in at 111.1 versus 109.5 in the previous reporting period.
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GBP/USD Forecast – Price Technical Analysis
The GBP/USD pair challenges the weekly pivot point of 1.3260 and the 1.3275 static resistance. These are seen as upside obstacles. Closing above these levels could signal strong buyers and potential further growth.
You already know from my previous analyses that the 1.32 psychological level stands as a strong support level, as a downside obstacle. The GBP/USD registered a new false breakdown below this level signaling strong buyers around this zone.
In the short term, it could move sideways between 1.32 and 1.3353 levels. The descending pitchfork’s upper median line (UML) stands as a potential upside obstacle, as a dynamic resistance. It remains to see how the rate will react around this line. Only a valid breakout above it may signal a larger upwards movement.
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