GBP/USD has ended its temporary retreat and now is traded near 1.3703 higher high. The outlook is bullish and the rate could continue to increase as the US Dollar Index stays lower despite the most recent rebound.
The pair is located in the buyer's territory, some poor US data released today could boost the price. Today, the US is to release its inflation data, the CPI is expected to increase by 0.4%, while the Core CPI could register a 0.1% growth.
Better than expected figures could help the greenback to increase in the short term, while poor data could send the USDX into agony again.
GBP/USD Resumes Its Uptrend!
GBP/USD is traded right above the R1 (1.3662) level and is somehow expected to resume its upwards momentum. The bullish engulfing printed on the S1 (1.3490) and right on the fourth warning line (wl4) signaled that the retreat is over and that the buyers could take the lead again.
The price is traded far above the up channel's resistance indicating that the uptrend could continue. The 1.3703 and the fifth warning line (wl5) represent immediate upside targets. Personally, I believe that GBP/USD will register strong upwards movement in the upcoming weeks if the rate closes and stabilizes above the 1.3703 and beyond the fifth warning line (wl5).
Buy a bullish closure above the 1.3703 former high and use the 1.3768 level as the first upside target. A valid breakout above the fifth warning line (wl5) signals a broader bullish movement.