GBP/USD Outlook: Above Expectations UK GDP Lifts Sterling But Pivotal 1.3600 Barrier Caps the Action

Technical analysis of Forex market

Cable edged higher on Friday, following better than expected UK GDP data which partially offset negative impact from further rise in US inflation that fueled expectations for possible more radical action from Fed.

Fresh advance continued to face strong headwinds at pivotal 1.3600 barrier (Fibo 61.8% of 1.3748/1.3357) after several upticks (yesterday /last week) failed to sustain break above this level.

Technical studies on daily chart show rising bullish momentum and MA’s returning to bullish configuration that supports the action, but magnetic daily cloud twist next week (1.3444) may obstruct fresh bulls.

Neutral mode is expected while the price action stays between 100DMA (1.3503) and 1.3600 mark, with break of either side to generate fresh direction signal. Traders focus on next week’s UK jobs/earnings and inflation data.

Res: 1.3600; 1.3627; 1.3643; 1.3656.
Sup: 1.3553; 1.3532; 1.3503; 1.3450.