- The bias remains bullish as long as it stays above the upper median line (uml).
- The retreat is natural after its strong rally.
- The US CB Consumer Confidence should shake the price today.
The GBP/USD price retreated slightly in the short term, trading at 1.2477, far below today’s high of 1.2507. The bias remains bullish, so further growth seems likely despite the corrective downside.
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Fundamentally, the UK Rightmove HPI and Public Sector Net Borrowing came in worse than expected. Later, the CBI Industrial Production is expected to be at -21 versus -20 in the previous reporting period.
Still, only the US session could bring high volatility and action as the US CB Consumer Confidence is expected to drop to 104.1 from 104.2 points. Worse than expected, US figures should weaken the greenback.
Furthermore, the New Home Sales and Richmond Manufacturing Index could be worse than the previous reporting period. Only positive US data could have the greenback from the downside. Poor economic figures should punish the USD. This scenario may announce a new leg higher.
Tomorrow, the US is to release the Durable Goods Orders, Core Durable Goods Orders, Goods Trade Balance, and Prelim Wholesale Inventories could move the rate.
The US economic data could be decisive at the end of the week as the Advance GDP, Unemployment Claims, Core PCE Price Index, and Employment Cost Index represent high-impact events.
GBP/USD price technical analysis: Bullish bias
The GBP/USD price rallied after failing to reach the 1.2353 former low. The pair has found resistance and strong sellers above the 1.25 psychological level.
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Technically, after its amazing rally, a retreat was natural. It could try to test the broken resistance levels before extending its growth.
A larger drop towards the upper median line (uml) and down to the weekly pivot point of 1.2420 could be activated if it stabilizes below 1.2472.
A bearish closure below the weekly pivot point of 1.2420 could validate a larger drop. Staying above the upper median line (uml), registering only false breakdowns through this dynamic support may announce a new leg higher.
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