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GBP/USD Ahead Of Key Data

The $GBPUSD has met all expectations here with its move right into the 61.8% Fibonacci retracement level of the latest bearish wave.

GBPUSD 4HR CHART

The market now waits on the UK GDP release. The expectations in the market are high for a positive beat which actually increases the downside risks in cable. If GDP disappoints, I believe the rally will be over. The technicals support a resumption of the bear trend with the 61.8% Fibonacci level capping the rally so far and a diverging RSI at these new highs. However, an upside beat or even an inline print will fuel this rally right back to 1.5500. A daily close above this psychological level will mark the beginnings of a reversal in the $GBPUSD.

Trade what you see.

Mentioned above:

UPDATE:

I corrected my thoughts on an upside or inline GDP print in my interview chat with FXStreet (at the 3:00 mark).

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