FX.co ★ GBP/USD Exit Its Range Soon?

GBP/USD has been trading sideways in the short term trying to accumulate more bullish energy before jumping higher. The outlook is bullish, so further growth is anticipated. The pair invalidated a larger drop, so an upside breakout is imminent.

Still, we have to wait for confirmation before going long on this pair. The US Dollar Index is at crossroads in the short term. DXY's (USDX) growth should push GBP/USD lower, while the index's decline may help the pair to resume its upwards movement.

Better than expected US data during the week could boost the DXY, so the pair could decline a little again. That's why the pair should confirm further growth as soon as possible.

GBP/USD Continuation Pattern!

GBP/USD has got stuck in a range for the short term after failing to register a new higher high. The price has tested and retested the immediate support levels confirming that the pair is still bullish.

Only a valid downside breakout from this range, below 1.4100, could invalidate the bullish scenario and could bring a short opportunity. The greenback needs strong support from the US economy during the week to be able to take the lead versus its rivals.

GBP/USD Outlook!

A valid breakout above the weekly R1 and through the 1.4241 level could really signal further growth. Such a breakout could represent a buying opportunity.

A selling opportunity will appear if GBP/USD drops and closes below the 1.4091 level.