GBP/USD Price Analysis: Bulls keep reins above 1.1600 ahead of UK data dump
- GBP/USD remains on the front foot after defying monthly bearish channel, crossing 10-DMA.
- Bull cross on MACD, firmer RSI also backs the pair’s recovery moves.
- Bears have a bumpy road to return, descending trend line from May is the key support.
GBP/USD remains on the front foot as it keeps Friday’s upside break of the bearish channel and the 10-DMA hurdle during Monday’s Asian session. That said, the Cable pair grinds higher around 1.1620 at the latest.
Not only the upside break of the 10-DMA and rejection of the bearish chart pattern but the recently firmer RSI (14) and the strongest bullish MACD signal in a month also favor the GBP/USD buyers.
With this in mind, the pair bulls aim for the 21-DMA hurdle surrounding 1.1700 ahead of the UK’s key monthly statistics for July, namely Industrial Production, Gross Domestic Product (GDP) and Manufacturing Production.
It’s worth noting, however, that the GBP/USD upside past 1.1700 needs validation from July’s bottom surrounding 1.1760 to keep buyers on the board. Following that, a north-run towards the previous monthly high surrounding 1.2280 can’t be ruled out, with the 1.2000 likely acting as an intermediate halt.
Alternatively, pullback moves may initially rest on the 10-DMA resistance-turned-support, around 1.1555 by the press time, before revisiting the stated bearish channel’s upper line, close to 1.1500 at the latest.
In a case where GBP/USD remains bearish past 1.1500, a four-month-old downward sloping support line, near 1.1375, could challenge the sellers before directing them to the aforementioned channel’s bottom, at 1.1284 by the press time.
GBP/USD: Daily chart
Trend: Further recovery expected