FX.co ★ GBP/USD at crossroads. Is it to exit its range soon?

The GBP/USD pair is trading in the red at 1.1228 at the time of writing. In the short term, it seems undecided. It has been moving within a range pattern. The rate dropped in the last hours only because the Dollar Index has managed to rebound and erase some of today's losses.

Surprisingly or not, the USD remains bullish even if the Philly Fed Manufacturing Index was reported at -8.7 points far below the -5.0 points expected, while CB Leading Index reported a 0.4% drop more versus the 0.3% drop expected.

GBP/USD Undecided!

The GBP/USD pair is trapped between 1.1156 and 1.1409 levels. The uptrend line represents dynamic support while the downtrend line is seen as an upside obstacle. In the short term, it could continue to move sideways only because the DXY could move sideways as well.

The 1.1179 - 1.1156 area represents a support zone, while 1.1380 - 1.1409 stands as a resistance zone. Only escaping from this pattern could bring new opportunities.

GBP/USD Prediction!

A valid breakdown below 1.1156 confirms that the leg higher ended and that the sellers take full control. This is seen as a selling opportunity. Only a new higher high, a valid breakout through 1.1409 activates a larger growth.