GBP/USD Price Ranging Below 1.23, Eying Key US Data

GBP/USD Price Ranging Below 1.23, Eying Key US Data

  • The GBP/USD pair could bring great opportunities after escaping from the current pattern.
  • A new higher high activates further growth towards the downtrend line.
  • The US data could be decisive later today.

The GBP/USD price dropped again after reaching the 1.2324 key upside obstacle. The price also retreated because the Dollar Index tried to rebound.

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In the short term, the currency pair could continue to move sideways. It’s trapped within a range pattern, so only a valid breakout from this formation could bring new opportunities.

As you already know from my analyses, the DXY moves sideways, trying to accumulate more bullish energy before resuming its upwards movement. The index maintains a bullish bias despite temporary retreats. DXY’s further growth should push the USD higher versus the other major currencies.

Fundamentally, the UK and US data came in mixed on Friday. The United Kingdom Retail Sales dropped only by 0.5% versus the 0.6% drop expected, while the Gfk Consumer Confidence came in at -41 points below -40.0 forecasts.

On the other hand, the US Revised UoM Consumer Sentiment reported worse than expected data, while the New Home Sales came in better than expected.

Today, the US economic figures could move the price. The Durable Goods Orders could report a 0.1% growth in May versus 0.5% growth in April. Core Durable Goods Orders are expected to register a 0.4% growth, while Pending Home Sales may drop by 3.5%.

GBP/USD price technical analysis: Rejection

GBP/USD price

From the technical point of view, the rate rebounded after reaching 1.2155 – 1.2172 area. Now, it has found resistance at 1.2324 static obstacle again. So, it’s trapped between 1.2324 and 1.2155 levels in the short term. Only a valid breakout from this formation could bring a trading opportunity.

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The GBP/USD pair is almost to reach the weekly pivot point of 1.2250, which stands as static support. It remains to be seen if the current range represents a distribution or an accumulation. A new higher high, a valid breakout above 1.2324, may activate further growth at least towards the median line (ml) and up to the downtrend line. Staying near this level may signal an imminent upside breakout.

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Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.