Price increased in the yesterday’s trading session and tries to recover after the last day’s drop. GBP/USD stays in the green territory and should climb much higher in the upcoming days. The perspective remains bullish on the Daily chart despite the minor drop.
The pair had come down only to retest some broken levels before will climb much higher. It could move sideways on the short term and could try to recapture more directional energy before will climb towards new highs.
GBP/USD increased significantly in the second part of the day as the USDX plunged on the mixed US data. The USD bulls were disappointed by the Unemployment Claims unexpected increase, the Initial Claims were reported at 272K, above the 269K estimate and much above the 260K in the former reading period.
Price climbed higher and failed to reach and retest the upside line of the ascending channel and the first warning line (wl1) of the ascending pitchfork, signaling that the bulls are still in the game and could take full control again.
Remains to see what will happen tomorrow because the economic calendar is filled with high impact data that could shake the markets.
Price is somehow expected to approach and reach the upper median line (uml) of the red descending pitchfork. A failure to breakout above this level will announce an exhaustion and a potential leg lower.
