GBP/USD bullish reversal awaits confirmation [Video]
|The GBP/USD pair rallies in the short term as the Dollar Index seems determined to resume its correction. It’s traded at 1.3078 level at the time of writing below 1.3082 today’s high which represents an upside obstacle. Fundamentally, the US data and the Fed Chair Powell Speaks could be decisive today. The Unemployment Claims could drop from 185K to 177K in the last week, while the Philly Fed Manufacturing Index is expected at 21.5 points below 27.4 in the previous reporting period. Worse than expected figures could weaken the greenback.
From the technical point of view, the price action signaled exhausted sellers after failing to stabilize under the 1.3000 psychological level. The 1.3000 - 1.2982 area stands as a major demand zone. As you can see on the H1 chart, the GBP/USD pair developed a new leg higher. As long as it stays above the lower median line (lml), the price could extend its growth. A valid breakout above the sliding line (SL) and above the 1.3082 may activate an upside continuation. Only a valid breakdown below the lower median line (lml) could invalidate the bullish scenario.
Join Learn 2 Trade VIP Group now!
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.