Our GBPUSD forecast has rallied in the last few hours as it tries to recover after its sell-off. Closing the current candle around 1.3854 current level could invalidate a deeper decline. The US Dollar Index has decreased a little from 92.73 today’s high.
The United States Consumer Price Index registered a 0.9% growth in June, exceeding the 0.5% expectations, while the Core CPI increased by 0.9%, more than the 0.4% estimate.
Forex trading market participants will have noted the DXY’s further growth signals that USD could increase versus its rivals in the short term. On the other hand, a potential drop printed by the Dollar Index indicates USD’s depreciation. The DXY is trapped within a short-term range, which could represent an accumulation.
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GBPUSD forecast – technical analysis: pressuring weekly pivot at 1.3848
GBP/USD is traded back above the downtrend line and within the ascending pitchfork’s body. It’s pressuring the weekly pivot point (1.3848). Staying within the ascending pitchfork’s body and closing above the pivot point could invalidate the breakdown below the immediate downside targets.
It has found strong resistance around the 61.8% retracement level, so a temporary decline was somehow expected. Stabilizing outside of the pitchfork’s body, under the lower median line (lml) could indicate a potential drop below 78.6% retracement level.
It remains to see what will happen in the near term with the US Dollar Index, which forex signals show is struggling to stay in a bullish territory. Technically, only a valid breakout above the 61.8% retracement level could really validate a larger upwards movement.
GBP/USD has shown some bearish pressure after failing to close in on the ascending pitchfork’s median line (ml).
UK inflation data will be released tomorrow, in addition to the US PPI and Core PPI. These economic figures could bring more action to the pair.
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