Despite November being the month of the American dollar, the Cable remained strong on relatively high levels, especially when compared to the EUR/USD. The reason for this situation is mainly the good condition of the British economy which is reflected in the data that the investors are considering as an important, as well as the near possibility of an increase in the interest rate.
GBP/USD Daily Chart" title="GBP/USD Daily Chart" width="1056" height="440">
For the past few weeks, the price was forming a head and shoulders formation (yellow areas); and yesterday, sellers had a chance to perform a bearish breakout. Claimant Count Change and the unemployment rate did not disappoint the buyers and the price. Instead of a bearish breakout, it went up and denied the H&S formation, at least for now.
The Cable is still under the trendline (blue), but the sentiment looks rather positive. The negative scenario will be on, once the price breaks the 23.6 Fibonacci level and the black neckline.
Today, traders will get the retail sales data in the UK, and this number along with the Yellen testimony should drive the markets.