FX.co ★ GBP/USD: imminent breakout

The GBP/USD pair is bullish in the short term and it seems determined to approach and reach new highs. Still, an upside continuation is far from being confirmed. The rate stands below strong upside obstacles. The currency pair is located at 1.2481 at the time of writing.

The price edges higher but it remains to see how it reacts after the US data dump. Advance GDP is expected to report a 2.0% growth, Advance GDP Price Index could increase by 3.7%, while Unemployment Claims could jump from 245K to 247K in the previous week. In addition, Pending Home Sales could register a 0.6% growth. Poor data should lift the currency pair.

GBP/USD Strong Upside Pressure!

As you can see on the H1 chart, the rate dropped a little after registering a new false breakout through the weekly R1 (1.2490) and above the warning line (WL1). Still, the bias is bullish in the short term as long as it stays above the lower median line (lml).

1.2446 represents a downside obstacle as well. As you can see on the H1 chart, the rate challenges the WL1 and is almost to hit the weekly R1 again.

GBP/USD Outlook!

GBP/USD could extend its growth as long as it stays above the lower median line (lml). A bullish closure above the R1 (1.2490) is seen as a bullish signal.