FXStreet (Córdoba) - The rally of the GBP/USD that has extended over the last sessions found an interim top at the 1.6840 zone, stalling a few pips shy of this month’s high.

The GBP/USD extended gains into a second day after upbeat UK employment figures lifted the pair back above 1.6800. However, the Cable lost momentum after a 100-pip advance within the last 2 days, as investors gear up for the next series of US indicators, including jobless claims and retail sales.

At time of writing, the GBP/USD is trading at the 1.6820 zone, recording a 0.2% gain Thursday, having scored a 1-week high of 1.6838 in recent dealings.

GBP/USD technical outlook

Valeria Bednarik, chief analyst at FXStreet, notes that GBP/USD has broken above a descendant trendline coming from this year high of 1.6996 and short-term charts show a strong bullish momentum.

“Price however is pulling back some towards the broken trend line, currently at 1.6810 and immediate support: below it, price may extend its slide towards mentioned 1.6770 level, while if this last gives up, 1.6735 is next support to consider”, said Bednarik. “To the upside, an acceleration above mentioned 1.6845 high should open doors for continued gains, looking then for a quick test of 1.6890 price zone, and higher towards 1.6920 critical resistance level”.

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
COMPANIES IN THIS ARTICLE
Trading Center