GBP/USD bullish momentum stopped, further growth still possible

The GBP/USD pair rallied from yesterday as the Dollar Index crashed. It has increased as high as 1.2143 today, where it has found resistance. It was trading at 1.2089 at the time of writing. After its strong rally, the rate could test and retest the near-term downside obstacles before jumping higher.

The pair retreated a little in the short term, but the GBP/USD pair could try to extend its leg higher as the USD took a hit from the CB Consumer Confidence. The indicator came in at 102.9 points, far below 108.5 expected and compared to 106.0 in the previous reporting period. In addition, Richmond Manufacturing Index, Chicago PMI, and Goods Trade Balance came in worse than expected as well.

Technically, the rate registered a valid breakout through the downtrend line (triangle's resistance), and it has reached the median line (ml) of the ascending pitchfork where it has found resistance again.

It has failed to hit the 1.2147 former high. This stands as an upside obstacle as well. In the short term, it's trapped between 1.1914 and 1.2147 levels. After its growth, the rate could test and retest the immediate support levels.

The currency pair could come back to test and retest 1.2026. The retreat could end above this level. This is seen as a buying zone, so the rate could develop a new upside momentum. The retreat could bring a new buying opportunity.

Also, a valid breakout above the 1.2147 and through the median line (ml) is seen as a buying signal as well.