- Bias remains bullish despite minor pullbacks.
- False breakouts through current resistance levels may herald another selloff.
- US data should have a big impact today.
The GBP/USD price pulled back slightly after posting a new high of 1.2569 in the last session. The pair is trading at 1.2534 at the time of writing.
The price was little changed in the short term as US banks were closed for Thanksgiving.
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Basically, the price remains higher as the UK released positive data yesterday. The Flash Manufacturing PMI jumped from 44.8 to 46.7 points, above expectations of 45.0 points, while the Flash Services PMI was reported at 50.5, above expectations of 49.5 points, confirming the expansion. Today Gfk Consumer Confidence reached -24 points compared to the forecast -28 points.
Later, the US economic figures should be decisive. The Flash Services PMI could fall from 50.6 points to 50.4 points, while the Flash Manufacturing PMI is expected to fall to 49.9 points from 50.0 points, indicating another contraction.
Better-than-expected US data should boost the dollar across the board. Also, Canadian retail sales and core retail sales should weigh heavily on the dollar.
GBP/USD Technical Analysis: Potential Sell Zone
Technically, the GBP/USD price failed to stay above the historical level of 1.2548 and the ascending midline (ml) of the villa, signaling exhausted buyers. However, the bias remains bullish, removing the weekly R1 (1.2570), retracing above the midline and making a new higher high may activate further upside.
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On the contrary, new false breakouts through current resistance levels may herald a new selloff. A bearish pattern could signal a strong correction towards the lower middle line of the ascending forks (LML).
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