US data came out worse than expected, and currencies are partying. When retail sales and inflation figures all miss expectations, the dollar reacts. The pound received some good news this week but Brexit still looms. Nevertheless, the fall of the greenback is clearly seen in GBP/USD.
Update: Well, that did not last too long. GBP/USD breaks with momentum to a 10-month high
Cable is topping the very round 1.30 level, reaching a high of 1.3011 so far. On the way up, Sterling crossed resistance at 1.2980 and is heading towards downtrend resistance.
The pair’s 2017 high is 1.3050 and since then, it registered a lower high at 1.3030. The line currently stands at 1.3025. If this attempt to break higher fails, it will confirm the line and serve as a third lower high, making it a big bearish sign for the pound.
And fundamentally, if the pound cannot take advantage of the great weakness of the greenback while other currencies are partying, it is of worry to GBP/USD bulls.
So far, the pair follows the pack and rises, but watch out for this level.
Here is the chart, note the downtrend resistance line.Get the 5 most predictable currency pairs