The GBP/USD has managed to take out a strong dynamic resistance line and now is targeting fresh new highs, the price has opened this week with a gap up and now has tried to close this gap, remains to see what will happen in the coming hours because if the price will stay above the Friday’s high, then the pair is expected to increase further on the short term. The currency pair has increased surprisingly even if the US dollar index has edged higher in the last week, the index has decreased a little in the early morning after the impressive bullish run.
The Cable has increased even if the UK economic data didn’t impressed in the last week, the Retail Sales have dropped by 1.3% in March, has reached the lowest level since February 2014, maybe the Pound has increased because the BOE has maintained the rate on hold, moreover the monetary policy didn’t suffer any change. The Confederation of British Industry is to release the CBI Industrial Order Expectations, the economic indicator could decline further, from -14 to -17 points, signalling lower volume.
The US dollar could receive a helping hand from the New Home Sales indicator, which is expected to increase from 512K to 521K in March and could reach the highest level of the last 3-months.
The GBP/USD has finally managed to jump and to close above the 50% Fibonacci line (descending dotted line), the price has retested the broken line and now looks determined to increase toward the 1.4564 horizontal resistance, where he could find temporary resistance, the main target remains at the upper median line (UML) of the medium term descending pitchfork. The pair continues to increase inside of the short ascending pitchfork, between the lower median line and the median line, the pair could try to retest the median line (ml) as well in the coming period. We’ll have a broader rebound on this pair only if the price will escape from the descending pitchfork’s body, the perspective remains bullish on the short term as long as the price is trading above the lower median line of the short ascending pitchfork.
The GBP/USD is moving somehow sideways on the short term and looks like that the price action has formed an inverse head and shoulders, this chart patter will be confirmed if the price will jump and stabilize above the 1.4564 level.
The price has found temporary resistance at the 1.4458 horizontal resistance and now is trying to close the gap up, and if will close below Friday’s closing price, then most likely will drop deeper in the coming hours, the support is at the 50% Fibonacci line and lower at the lower median line (lml) of the ascending pitchfork.
We could have a Rising Wedge pattern on the short term, the price has slowed down the increasing pace and now could retreat on the short term to recapture energy for another bullish momentum. The Rising Wedge will be confirmed if the price will ignore the minor support from the short uptrend line.