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GBP/USD rallied after reaching 1.3733 today’s low. In the short term, it’s still bullish despite the temporary decline. The Dollar Index is bearish, so it could drop anytime again. Technically, we can still search for long opportunities in GBP/USD.
The USD has taken a hit from the US Pending Home Sales indicator which has registered a 1.8% drop in July even if the specialists have expected a 0.5% growth.
GBP/USD Technical Analysis!
GBP/USD has decreased a little after reaching the median line (ML). The median line was seen as a dynamic resistance. Now, it has found support in the daily pivot point (1.3738) level. Technically, making a valid breakout through the median line (ML) could signal an important upwards movement.
A new higher high after its failure to reach and retest the ascending pitchfork’s lower median line (lml) could signal upside continuation.
Conclusion!
The current decline could be only a temporary one. Jumping and stabilizing above the median line (ML) could activate further growth.
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