GBP/USD to Re-Test 1.300 level Ahead of Local GDP
GBP/USD has entered the fourth consolidative trading session and been confined within 116-pips price action. The pair dipped yesterday to 1.2927 low as U.S Index showed some strength with 97.36 high, but then faded away as FOMC meeting maintained a neutral stance, not giving clear messages on how things are heading despite the highly odds for June hike which was already expired as a fact, hence the pair managed to shift bearish candles top bullish and clocked a 1.2999.
Today will the second chapter for the pair as UK releases Second Estimate GDP, shortly followed by U.S. data sterling hanging above 1.2900 will tested. Options are opened with 1.300+ or 1.2900- are on the menu depending on both data outcomes. Currently the pair is trading 1.2988 with rising daily bullish pattern, above 20-EMA (D1) at 1.2920 and U.S Index 96.85, indications that GBP/USD still have further inclines.
Fundamentally, GBP is still boosted by approaching UK elections on 8th of June, and U.S. dollar is still being pulled downward by Trump's scandal-isms and media negative propaganda with the most repelling popularity U.S. president, ever since. in case the pair dipped, chances for overcoming losses keeps the pair maintaining recent spikes are high.
Fundamentals:
1- GBP - Second Estimate GDP q/q today at 8:30 PM GMT.
2- GBP - Prelim Business Investment q/q
3- USD - Unemployment Rate along with minor impact data at 12:30 PM GMT.
Technical Overview:
Trend: Bullish / Sideways
Resistance levels: R1 1.300, R2 1.3032, R3 1.3062, R4 1.3120
Support levels: S1 1.2952, S2 1.2885, S3 1.2845, S4 1.2775
Summary: The market is bullish and a breakout above yesterday's high sparks further hikes seenimg R2&R3 as target. Closing above R1 level hold potential for R4 level. The rising congestion pattern suggests any dips should stabilize along 12950- and likely use any congestion days to build a staging level for rallies. Closing below S2 alerts for trend reversal potentially seeing S4 as a destination. Keep and eye on both UK and U.S data today to have a better outlook on how the price action will settle along with U.S Index levels and the above mentioned fundamentals.