- The GBP/USD pair maintains a bullish bias as long as it is above the midline.
- He could only test and retest support levels before turning to the upside.
- US economic data should move the rate.
The GBP/USD price set a new high on Wednesday at 1.2733. However, the pair could not sustain the gains, falling to 1.2682 at the time of writing.
The dollar index turned higher after a sharp decline. A significant recovery in the dollar could weigh on sterling.
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The currency pair hit new highs after some dovish remarks by FOMC members at the last meeting. The USD was ignored by CB US consumer confidence, which came in at 102.0 points versus an expected 101.0 points, compared to a revised 99.1 points in the previous reporting period.
Today, UK M4 and mortgage approvals were better than expected, while net lending to individuals was in line with expectations.
Later, US data should weigh on the price. Prelim GDP is expected to register a growth of 5.0% compared to a growth of 4.9% in the previous reporting period. The previous GDP price index may herald a 3.5% increase, while the merchandise trade balance could rise from -86.8B to -86.4B. Also, BoE Gov Bailey speaks.
GBP/USD Price Technical Analysis: Corrective Downside
Technically, the GBP/USD price found resistance at the weekly R2 of 1.2720, turning to the downside. It could approach the weekly R1 (1.2660), a static support. The middle line (ml) represents a dynamic support.
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The trend is still bullish as the price is still above the key level. The GBP/USD pair could pull back, trying to accumulate more bullish energy before developing new bullish momentum. Only a drop and stabilization below the middle line (ml) can lead to a significant drop.
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