GBP/USD is trading at 1.2953 and is almost to validate a reversal pattern in the short term. Another higher high should signal a strong upside movement. The pound has taken the lead again as the USD is weakened by USDX's indecision.
Today, the UK's data could be decisive. The GDP is expected to increase by 4.6%, less versus 6.6% in the previous reporting period, the Goods Trade Balance could drop to -9.1B, while the Construction Output could register a 5.1% growth.
The Manufacturing Production and Industrial Production will be released as well. A bigger growth, better than expected figures, could boost GBP/USD.
GBP/USD has escaped from the minor down channel's body for the second time in the last days signaling a potential up reversal. A bullish fly above 1.3007 and beyond the R1 (1.3020) could validate an Inverted H&S pattern.
The pattern should signal and confirm a breakout above the median line (ML) and a further growth towards 1.3483 higher high. Personally, I believe that the up scenario will be invalidated by a drop below 1.2813.
- GBP/USD Trading Tips
Buy a valid breakout above the R1 (1.3020) level with a first potential target at the R3 (1.3249) level. The next major upside obstacle is seen at the 1.3483 level.
A deeper drop will be signaled by a fall and stabilization under 1.2813 static support.
The material has been provided by InstaForex Company - www.instaforex.com
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