- The bias remains bullish as long as it stays above the uptrend line.
- A new higher high activates further growth ahead.
- The US data could be decisive tomorrow.
The GBP/USD price is trading in the red at the time of writing on the hourly chart. The pair is trading at 1.2175 below the 1.2200 psychological level.
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Still, the retreat could be only temporary as the bias remains bullish. Fundamentally, the UK Halifax HPI reported a 2.3% drop in yesterday’s trading session versus the 0.2% drop expected.
On the other hand, the US Revised Nonfarm Productivity rose by 0.8% versus the 0.6% estimates, Consumer Credit was reported at 27.1B below 28.2B forecasted, while Revised Unit Labor Costs came in better than expected. The BOC had an impact on the greenback as well.
Today, the UK RICS House Price Balance reported a 25% drop versus the 10% drop estimated. Later, the US Unemployment Claims could bring more action. The economic indicator is expected at 230K in the last week versus the 225K in the previous reporting period.
Tomorrow, the US data could be decisive. The PPI may report a 0.2% growth, Core PPI is expected to register a 0.2% growth, while the Prelim UoM Consumer Sentiment could jump from 56.8 points to 56.9 points.
GBP/USD price technical analysis: Temporary retreat
The GBP/USD pair turned to the downside after failing to stabilize above the 1.2200 psychological level. It has failed to stabilize above the descending trendline signaling strong downside pressure. Now, it challenges the weekly pivot point of 1.2170.
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The 1.2153 and the ascending trendline represent strong downside obstacles. The bias remains bullish as long as it stays above these levels. Taking out these levels may signal a deeper drop in the short term.
Testing and retesting the support levels, making false breakdowns followed by a new higher high may trigger an upside continuation. An upside continuation could be confirmed only after making a valid breakout above the 1.2293 and through the upper median line (UML).