The GBP/USD exchange rate continues to cause excitement on the trading floor. Currently trading at USD 1.2815, the currency pair saw a slight decline of 0.19% today. But don’t let that fool you, as it has been in a remarkable uptrend since the end of June.
A look at the daily chart reveals the pattern of a double top. Such a chart pattern often indicates a possible trend reversal and should be taken into account during a trading action. The bottom line of this pattern could be expected at around USD 1.2650, as this is where the intact uptrend line can be found.
The indicators also bring interesting information to the table. The 50-day moving average is at USD 1,2580, while the 200-day moving average is at USD 1,2162. These figures signal a solid upward trend.
The next resistance is at 1.2851 USD, while the next support is at 1.2683 USD. Currently, a slight downward movement of the price towards the USD 1.27 mark is expected due to the chart formation. In this movement, there could be an entry opportunity for a short position if the price is not able to break through the mentioned resistance. However, if the GBP/USD rate breaks above the resistance at 1.2851 USD, this could pave the way for a rise to the 1.29 USD mark.
Furthermore, we should keep an eye on the upcoming economic data. U.S. consumer price index data will be released at 2:30 p.m. Tuesday. On Thursday at 8:00 a.m., the GDP of Great Britain will provide insights into the economy there. Finally, initial jobless claims will be in focus at 2:30 p.m. Friday. This economic data could bring additional volatility to the GBP/USD exchange rate and should be closely followed by market participants.