GBP/USD Price Recovers Modestly Above 1.32 as Greenback Retreats

• The GBP/USD pair could register a broader growth if it validates its breakout above the near-term upside obstacles.
• Stabilizing above the 38.1% retracement level may bring new long opportunities.
• The ascending pitchfork’s median line (ML) represents strong dynamic support.

 The GBP/USD price rallied today, and it seems determined to extend its rebound. The pair is trading at a 1.3260 level around the intraday highs. The currency pair edged higher as the Dollar Index plunged.

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The price was expected to rebound and recover in the short term after its amazing sell-off. Still, the throwback was expected to be only a temporary one. The price action signaled that we may have a larger bullish movement after jumping above strong resistance levels. However, an upwards continuation needs confirmation, and the GBP/USD pair continues to pressure near-term upside obstacles.

Fundamentally, the UK economic data came in mixed today. The CBI Industrial Order Expectations was reported at 26 points above 16 points estimated versus 20 points in the previous reporting period. The Public Sector Net Borrowing came in at 12.3B versus 8.5B. Later, the Richmond Manufacturing Index is expected to grow from 1 to 2 points.

The volatility could be high tomorrow as the United Kingdom releases its inflation figures. The CPI is expected at 6.0% in February versus 5.5% in the previous reporting period. Meanwhile, the Core CPI could be reported at 5.0% in the last month versus 4.4% in January. In addition, BOE Gov Bailey Speaks, UK Annual Budget Release, and Fed Chair Powell Speaks could shake the markets.

GBP/USD price technical analysis: Bulls break 1.3200

The GBP/USD pair tested the ascending pitchfork’s median line (ML), representing dynamic support. The price registered only false breakdowns signaling strong upside pressure. It has stabilized also above the 1.3129 weekly pivot point and above the 23.6% retracement level indicating strong buyers.

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It challenges the ascending pitchfork’s upper median line (UML) and the 38.2% retracement level. However, a valid breakout may announce an upside continuation. This scenario could bring new long opportunities as well. Technically, the aggressive breakout through the 1.3160 – 1.3194 indicates that we may have a bullish reversal in the short term.

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