Today we’re looking at the GBPUSD as buyers continue to hold firm and now only face one level of resistance both they can get the new uptrend back on track. Fundamentally a few things remain on the radar. US inflation and rate rises could be factored in unless we see a new spike. The minutes didn’t do much to drive the USD this week, while a recent increase in UK inflation supported the GBP yesterday, giving the GBPUSD a nice boost in Wednesday’s session.
US inflation and UK inflation
Let’s look at some of the technicals we’re watching on the GBPUSD chart with that in mind. For now, we see the price stuck in consolidation with support and resistance currently holding the price. Overall we can see two new uptrends in play in short and medium times. Price also sits above all three moving averages, and the short term MAs are trading above the 86 MA.
While support remains firm, we will continue to look for buyers to push at a new continuation. The key to this is a break above the two resistance points.
This could confirm a new breakout and suggest that the medium-term trend could continue. A break below support and a move back to the new Med-trend would be a small warning sign, and further evidence would be required before thinking that the trend will continue.
