Although GBP/USD is higher in today’s trading, currently holding near 1.2798, a gain of 0.16% over Wednesday’s North American close, the high established on Tuesday near 1.2900 remains intact.
The pair is expected to consolidate over the near-term, as a negative divergence has developed between price action and the Stochastic, a price momentum indicator.
However, an eventual continued move to the upside appears likely, given Tuesday’s strong breakout from the symmetrical triangle on the daily chart, which formed following the establishment of the early December high. The upside target derived from this pattern is near the September 2016 high at the 1.3400 level.
Support, should sellers step in, is at the mid-point of Tuesday’s long green candle, near the 1.2700 level.
There were no economic releases on the UK calendar today. In the US, jobless claims are due at 08:30 ET, as is the Philadelphia Fed Index. Leading indicators will be released at 10:00 ET.
In the UK, Retail Sales will be reported at 04:30 ET on Friday. The data was weak in December and January, then made a strong recovery in February. A reading of -0.2%, month-over-month, is expected for March. This follows a reading of 1.4% for February. Core retail sales is expected at -0.4%, month-over-month, for March, following a reading at 1.3% in February.