- The GBP/USD rebounded but the pressure is still high as long as it stays under the warning line (wl1).
- A new lower low could invalidate further growth and could bring new short opportunities.
- The US data will drive the pair, so you should keep an eye on the economic calendar to see what’s moving the price.
The GBP/USD forecast sees the pair rallying to now challenge dynamic resistance. Making a valid breakout signal further growth. Still, we’ll have to wait for confirmation as the pressure is high around the current dynamic resistance. The price rebounded only because the Dollar Index has retreated in the short term.
You should be careful as better than expected US data today and tomorrow could boost the greenback. The British Pound received a helping hand from the Uk Halifax HPI which has registered a 1.7% growth compared to 1.3% expected and versus 0.8% growth in the previous reporting period.
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The United States is to release its Unemployment Claims later. The economic indicator is expected to drop from 362K to 350K in the last week. Moreover the Consumer Credit is expected to grow from 17.0B to 17.4B.
It remains to see what will really happen as the US is to release the Non-Farm Employment Change, Unemployment Rate, and the Average Hourly Earnings tomorrow. All these are seen as high-impact, so the volatility will be huge around these releases. Better than expected US economic figures at the end of the week could send GBP/USD down again.
GBP/USD Forecast: Price Technical Analysis -Dynamic Resistance
The pair has found support right below the weekly pivot point of 1.3561 level and now is located back below the warning line (wl1). From the technical perspective, the warning line stands as a dynamic resistance. You can see that the GBP/USD was rejected by this obstacle in the past.
You should remember that the Dollar Index maintains a bullish bias despite the current retreat. DXY’s rally could push the pair down towards fresh new lows.
The GBP/USD pair could still grow as long as it stays above the weekly pivot point. A valid breakout through the warning line (wl1) may signal an upside movement towards the ascending pitchfork’s median line (ml.)
On the other hand, dropping and stabilizing below 1.3543 yesterday’s low could activate more declines.
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