- Summary:
- The GBP/USD has bounced back again after the significant dip experienced yesterday. Here is the outlook for the pair in the near term
The GBP/USD is bouncing back ahead of the US GDP, durable goods, and pending home sales numbers. The GBPUSD is trading at 1.4165, which is slightly above yesterday’s low of 1.4080.
What happened: Jerome Powell completed his second testimony yesterday. In it, he reiterated that the US economy was in a recovery mode; albeit an uneven one. He also said that the bank will continue to support this recovery by providing more quantitative easing and lowering interest rates.
Later today, the GBP/USD price will react to the latest US GDP data that will be released by the Bureau of Statistics. The pair will also be affected by the latest US durable goods order numbers and pending home sales. Other important data will be the jobless claims as politicians in Congress continues to deliberate on the next stimulus.
GBP/USD technical forecast
The GBP/USD price tumbled to a low of 1.4080 yesterday as traders started taking profits. Today, a reversal is happening as traders start buying the dips. The price is approaching the upper side of the ascending channel and is still above the 25-day and 50-day exponential moving averages. Therefore, there is a possibility that the pair will continue rising as bulls target the YTD high of 1.4243. However, a drop below 1.4125 will invalidate this trend.
GBP to USD chart
