The GBP/USD pair has showcased significant bullish momentum in the latest trading session, spurred by positive manufacturing and services PMI reports from the UK. The data exceeded market expectations, injecting optimism and driving the pair past recent resistance levels.
Fundamental analysis: The robust PMI figures have highlighted underlying economic strength in the UK, overshadowing concerns about inflationary pressures. This positive economic news has shifted the focus from technical resistance levels to the pair's fundamental potential for growth.
Technical perspective: Technically, GBP/USD keeps forming a pattern of higher highs, signaling an uptrend. The recent break above the 1.27 level, which was a crucial resistance, now turns into a support zone that could fuel further upward movement if maintained.
Our position: The encouraging PMIs have fortified our bullish outlook, prompting us to look for opportunities to enhance our long positions. As stated yesterday, our positions were closed in great profits by our trailing stops. We anticipate further gains if the pair sustains its climb and remains above key support levels. As it keeps holding these levels, we will continue to look for buy opportunites up to its major resistance at 1.2800 which is a pivotal point for the pair. We will continue to monitor economic indicators closely, as they are likely to drive the pair's movement in the near term, particularly with the U.S. rate decision approaching.
Fundamental analysis: The robust PMI figures have highlighted underlying economic strength in the UK, overshadowing concerns about inflationary pressures. This positive economic news has shifted the focus from technical resistance levels to the pair's fundamental potential for growth.
Technical perspective: Technically, GBP/USD keeps forming a pattern of higher highs, signaling an uptrend. The recent break above the 1.27 level, which was a crucial resistance, now turns into a support zone that could fuel further upward movement if maintained.
Our position: The encouraging PMIs have fortified our bullish outlook, prompting us to look for opportunities to enhance our long positions. As stated yesterday, our positions were closed in great profits by our trailing stops. We anticipate further gains if the pair sustains its climb and remains above key support levels. As it keeps holding these levels, we will continue to look for buy opportunites up to its major resistance at 1.2800 which is a pivotal point for the pair. We will continue to monitor economic indicators closely, as they are likely to drive the pair's movement in the near term, particularly with the U.S. rate decision approaching.