FX.co ★ GBP/USD Short-Term Up Reversal Validated

GBP/USD is trading at 1.3021 level at the time of writing and it seems determined to resume the short-term upside movement. The rate has made another higher high signaling strong buyers.

Unfortunately, USDX's decline weakens the greenback which declines versus its most important rivals. The Pound edged higher even if the UK's data has disappointed on Friday. Tomorrow, the US inflation data could bring high action on this pair. The dollar could resume its decline if the economic data come in worse than expected.

The price has come back to retest the 1.3007 broken static resistance before moving higher. Technically, the breakout above this obstacle and the new higher high confirms the Inverted Head&Shoulder pattern.

A bullish closure above 1.3059 today's high should validate further growth. The R1 (1.3112) and the median line (ML) are seen as immediate upside targets, obstacles. GBP/USD is expected to jump higher after escaping from the minor down channel.

• GBP/USD Trading Tips

Buy a bullish closure above 1.3059 today's high with a potential upside target at the R3 (1.3316) level.

The bullish scenario will be invalidated only by a drop below 1.2813 level. This scenario is less likely to happen.