GBP/USD has advanced to as much as the 1.3874 level where it has found resistance. Now it is pressuring dynamic resistance. It remains to be seen whether the bulls are strong enough to push the price above this upside obstacle.
The pair has increased only because the US Dollar Index has reached fresh new lows. GBP/USD has moved higher even though the UK Final Services PMI was reported lower at 55.0 points below the 55.5 estimate compared to 55.5 in the previous reporting period.
GBP/USD was bullish before the US data dump. USD was weakened even more by the Non-Farm Payrolls which has reported only 235K jobs in August versus 720K expected. Moreover, the ISM Services PMI come in worse than expected as well. It was reported at 61.7 points below 61.9 expected.
GBP/USD Challenges Dynamic Resistance
GBP/USD registered a valid breakout through weekly R1 (1.3822) and is now pressuring the inside sliding line (SL) which stands as dynamic resistance. I have mentioned in my previous analyses that the pair could resume its growth after jumping through the downtrend line.
Technically, its failure to test and retest the ascending pitchfork's lower median line (LML) signaled strong buyers. A valid breakout through the sliding line (SL) could validate further growth.
Outlook
Jumping, closing, and stabilizing above the sliding line (SL) and above the weekly S2 (1.3889) is seen as a long opportunity. The major upside target stands at the ascending pitchfork's median line (ML).
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