GBP/USD Supported By Retail Sales Data!
GBP/USD is bullish and it continues to stay near a critical resistance area. Anything could happen in the short-term, so you should wait for a fresh trading signal. A valid upside breakout suggests buying, while a reversal pattern announces a corrective phase.
The pair continues to stay higher as the UK’s Retail Sales indicator registered a 1.2% growth in October, even if the specialists have expected to see a 0.3% decline. Also, the Euro-zone Consumer Confidence could shake the markets a little in the afternoon, so you should be ready for more volatility.
The Pound Is Still In Charge!
GBP/USD bullish bias remains intact even if the selling pressure could intensify around the immediate resistance levels. Technically, the price is somehow expected to challenge the R1 (1.3301) and the channel’s upside line once again after retesting the Pivot Point (1.3202) level.
A valid breakout through the mentioned resistance level and above the second warning line (wl2), a new higher high, should signal further growth towards the third warning line (wl3). On the other hand, a pin bar, false breakout with huge separation, or a major bearish engulfing signal a sell-off.
- GBP/USD Trading Conclusion
The channel’s upside line remains a very strong dynamic resistance, so another false breakout or a drop under 1.3195 former low without toughing the resistance levels could bring a short opportunity. A new lower low could suggest a deeper drop, towards the up channel’s support line.
GBP/USD is still bullish, so have could search for a new long opportunity if the rate takes out the near-term resistance levels (channels upside line, R1, and the wl2). Closing and stabilizing above these obstacles, above the 1.33 psychological level could indicate a potential growth towards the 1.35 level.
The material has been provided by InstaForex Company – www.instaforex.com