FX.co ★ GBP/USD Comes Under Upside Pressure

GBP/USD has found strong support around the 1.2862 level and now is determined to challenge a dynamic resistance. USDX's sell-off weakens the greenback which drops versus all its rivals in the short term.

The Pound could take full control after the UK's inflation data release. The CPI rose by 0.5%, beating the 0.4% expectations, while the Core CPI increased by 1.3% as expected.

• GBP/USD Upside Breakout Suggests Continuation!

The pair failed to stabilize outside of the ascending pitchfork's body or to approach the median line (ml) of the descending one signaling that GBP/USD could give birth to another upwards momentum.

A valid breakout above the upper median line (uml) of the descending pitchfork and a new higher high should bring a long opportunity. GBP/USD has printed a minor ascending triangle, so an upside breakout signals further gains.

• GBP/USD Trading Tips

Buy a bullish closure above the R1 (1.3044) level with an immediate upside target at the R2 (1.3174), at the median line (ML) of the ascending pitchfork.

Another drop could be signaled by a false breakout with great separation above the upper median line, or by a bearish engulfing followed by a drop below the 1.2862 level.