The GBP/USD pair retreated a little after reaching 1.1439 today's high. The bias is bullish in the short term as the Dollar Index crashed. DXY's deeper drop should force the pair to approach and reach new highs.
Fundamentally, the UK Rightmove HPI rose by 0.9% versus the 0.7% growth in the previous reporting period. On the other hand, the Empire State Manufacturing Index was reported at -9.1 points versus the -4.3 expected.
Tomorrow, the US Capacity Utilization Rate is expected at 79.9% versus 80.0% in the previous reporting period, while Industrial Production may register a 0.1% growth in September.
GBP/USD Downside Invalidated!As you can see on the H1 chart, the rate failed to drop and close below the 1.1156 level signaling strong upside pressure. Now, it has managed to jump above the downtrend line signaling a larger swing higher.
Technically, the bias is bullish as long as it stays above the uptrend line and beyond the broken downtrend line. The rate dropped a little after its amazing rally and after failing to stabilize above the 1.1409 historical level.
GBP/USD Forecast!1.1380 - 1.1409 represent a resistance zone. The broken downtrend line and the uptrend line represent downside obstacles.
A valid breakout above 1.1409 and a new higher high activates further growth and brings new long opportunities.