GBP/USD Trades Ascending Triangle Pattern – Brace for Bullish Trade
Arslan Butt • 1 min read
The GBP/USD pair continues to trade bullishly at the 1.3279 level, on the back of a weaker US dollar. The US House Republican leader Mitch McConnell did not give any major clues as to when the much-awaited COVID-19 stimulus package will be delivered. However, the lack of evidence could be associated with the Democratic Party’s agreement with the Republican proposal over the amount of the aid package. Therefore, the US policymakers are giving nothing away regarding the stimulus package, and this is exerting additional downside pressure on the market trading sentiment.
As a result, the broad-based US dollar extended its early-day gains, taking further bids on the day, as a continual rise in COVID-19 cases globally is keeping the market trading sentiment under pressure. Conversely, the doubts over the economic recovery in the US, amid the increasing number of infections, has become a key factor that is keeping a lid on any additional gains in the US dollar. Another factor that could be capping the gains for the greenback could be the downbeat US Retail Sales data. But the modest gains in the US dollar have become a key factor that has kept a check on any additional gains in bullion, as the price of gold is inversely related to the price of the US dollar. Thus, the weakness in the greenback is driving an upward movement in the GBP/USD pair.
Pivot Point: 1.3234
Technically, the GBP/USD pair is trading bullishly; as it has formed a bullish engulfing candle over the 1.3227 support level. On the higher side, the pair may continue to head higher until the 1.3297 resistance level; therefore, we have entered a buying trade in the currency pair. Checkout the FXLeaders forex trading signals page for more updates!