GBP/USD dropped a little in the short term, but the bias remains bullish. The USD could resume its depreciation after the dovish Jackson Hole speech. The current decline could help us to catch new long opportunities.
It's located at 1.3756 far above 1.3733 today's low. 1.3780 Friday's high is seen as static resistance. Today, the UK banks were closed in observance of the Summer Bank Holiday. GBP/USD has rallied after the Unites States Pending Home Sales indicator dropped by 1.8% in July, even if the specialists have expected to see a 0.5% growth. The economic indicator remained deep in the negative territory after the 2.0% drop registered in June.
The US data could be decisive during the week. The ADP Non-Farm Employment Change, ISM Manufacturing PMI, CB Consumer Confidence, Average Hourly Earnings, Unemployment Rate, ISM Services PMI, and the Non-Farm Payrolls could bring sharp movements.
GBP/USD Bulls In Charge!
GBP/USD stands above 61.8% retracement level. It could still increase as long as it stays within the ascending pitchfork's body. The price has failed to approach and retest this dynamic support signaling strong buyers.
The weekly pivot point (1.3715) is seen as static support. GBP/USD is bullish as long as it stays above the immediate support levels. The resistance is seen at the downtrend line. So, only a valid breakout through the downtrend line could really validate a larger upwards movement.
Outlook!
Techncially, a new higher high, jumping and stabilizing above 1.3780 Friday's high could signal further growth at least until the weekly R1 (1.3823). Personally, I would have liked to see a retest of the lower median line (LML) before jumping higher.
Also, a temporary consolidation here around the current levels followed by a new higher high could be seen as a long opportunity.
The material has been provided by InstaForex Company - www.instaforex.com