GBP/USD Upside Remains Intact!

GBP/USD moves sideways in the short term after failing to make new highs. Actually, a temporary decline is understandable after the most recent swing higher. The pair tries to attract more buyers and it could resume its growth if the DXY (US Dollar Index) resumes its decline.

Surprisingly or not, the pair stayed lower around even if the US CB Consumer Confidence dropped unexpectedly from 117.5 to 117.2, even if the specialists have expected an increase to 119.0.

Also, New Home Sales dropped from 917K to 863K failing to meet the expectations for an increase to 950K. The USD has increased a little yesterday as the US Dollar Index has rebounded. Still, you should know that the DXY (USDX) maintains a bearish bias, so it could drop anytime again.

Tomorrow could be decisive from the USD as the US is to release the Prelim GBP, Pending Home Sales, and its Unemployment Claims.

GBP/USD Accumulates More Energy!

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GBP/USD is trading above the weekly pivot (1.4150) and under the 1.4177 static resistance. It has printed a minor triangle which could represent a continuation pattern if the price makes an upside breakout.

Its failure to approach and reach the weekly S1 (1.4066) could signal strong buyers. Jumping and stabilizing above 1.42 psychological level may signal more gains towards 1.43.

Forecast!

Sell GBP/USD if the rate drops and closes under 1.4100 psychological level with a potential downside target at 1.40.

A valid breakout from the minor triangle and above 1.42 may bring us a new long opportunity with an upside target at the 1.4307 level.

The material has been provided by InstaForex Company - www.instaforex.com

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