GBP/USD is trading at 1.3908 below 1.3918 today's high. The price has invalidated a broader corrective phase, so now it could move north again.
The USDX's massive drop has forced the greenback to decline versus its major rivals, not only against the Pound. The Dollar Index has extended its decline after the US has published mixed data yesterday.
The ISM Manufacturing PMI increased unexpectedly higher from 55.3 to 63.7 points beating 58.3 expected, while the Final Services PMI increased from 60.0 to 60.4 exceeding the 60.3 estimates.
Unfortunately, the US Factory Orders plunged in February. The indicator registered a 0.8% decline versus 0.5% expected after a 2.7% growth in January.
GBP/USD Downside Invalidated!
GBP/USD failed to stabilize below the major red uptrend line registering an upside breakout through the downtrend line in the end. It's traded above the R1 (1.3878) flirting with the minor ascending pitchfork's median line (ml).
Technically, the price could decline a little after the last bullish momentum. It could come back to test and retest the immediate support levels before jumping higher and resuming its upwards movement.
A valid breakout above the median line (ml) and through the R2 (1.3938) could validate further growth and could bring a new buying opportunity.
GBP/USD Forecast & Tips!
Buy GBP/USD if it jumps and stabilizes above the median line (ml) and beyond the R2. Also, a new false breakdown through the red uptrend line could bring a new upside opportunity.
The R1 (1.4024) could be used as a first upside target if GBP/USD continues to increase after the current decline.
The material has been provided by InstaForex Company - www.instaforex.com