GBP/USD has managed to increase today and to erase some of yesterday's losses. It's back above the weekly pivot point (1.3849), but we still need confirmation before considering going long.
The Pound has received a helping hand from the UK inflation data. The CPI increased by 2.5%, while the Core CPI rose by 2.3%. GBP/USD has slipped lower in the last hours but this could be only a temporary decline.
GBP/USD Upside Continuation!
Technically, it has failed to stay under the trigger line and below the warning line (wl1). When the price makes a valid breakout above a trigger line, the pair could move in the breakout direction.
Its failure to reach the S1 signaled a potential throwback. Still, only a valid breakout above the 1.3909 could really activate potential larger growth.
Outlook!
An upwards continuation could be confirmed and activated by a breakout above the 1.3909 level. Technically, GBP/USD could approach and each 1.4001 high after failing to reach the descending pitchfork's median line (ml).
The upside scenario could be invalidated only if the pair drops again under the trigger line.
The material has been provided by InstaForex Company - www.instaforex.com