- The GBP/USD pair maintains a bullish bias as long as it stays above the uptrend line.
- The price action activated a larger growth after taking out the resistance represented by the median line (ML).
- A minor consolidation above the immediate downside obstacles could announce further growth.
Our GBP/USD forecast sees the pair performing bullishly despite a minor retreat. It’s traded at 1.3731 level at the time of writing, right below 1.3748 yesterday’s high. The currency pair stays higher even if the Dollar Index tries to rebound and recover after its amazing sell-off.
As long as it’s located in the buyer’s territory, above strong downside obstacles, the price could extend its growth. Still, in the short term, the fundamentals could move the price.
As you already know, the British Pound remains strong as the UK data came in better than expected earlier today.
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The GDP rose by 0.9% versus 0.4% expected, Industrial Production registered a 1.0% growth, exceeding 0.2% estimates, while the Manufacturing Production reported a 1.1% growth, beating 0.2% forecasts. Also, the Construction Output and the Index of Services came in better than expected.
Later, the US economic data could bring high volatility and sharp movements. The Retail Sales may report a 0.0% growth in December, while the Core Retail Sales could register a 0.2% growth.
Industrial Production, the Capacity, Utilization Rate, and the Prelim UoM Consumer Sentiment could shake the markets as well, so you have to be careful as the GBP/USD could register strong moves.
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GBP/USD Forecast: Price Technical Analysis – Up Channel
The GBP/USD pair dropped a little after reaching the up channel upside line, but the bias remains bullish as long as it stays above the R2 (1.3706), 1.37 psychological level, and above the 78.6% retracement level. Also, the uptrend line stands as an important downside obstacle. A minor consolidation could announce more gains.
After such an impressive leg higher, a temporary decline or a minor accumulation is natural. The bias remains bullish, that’s why we can still search for great long opportunities.
The GBP/USD pair could extend its growth after taking out the resistance represented by the ascending pitchfork’s median line (ML). If the price continues to grow, the 1.38 psychological level could be used as an upside target.
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