GBP/USD Forex Signal Today 17/06: Rising Wedge Forms (Chart)

(MENAFN- Daily Forex) Bearish view

• Sell the GBP/USD pair and set a take-profit at 1.3500.
• Add a stop-loss at 1.3700.
• Timeline: 1-2 days.

Bullish view

• Buy the GBP/USD pair and set a take-profit at 1.3700.
• Add a stop-loss at 1.3500.

The GBP/USD exchange rate was flat on Tuesday ahead of the upcoming US and UK macroeconomic data and interest rate decisions from the United States and the UK. It was trading at 1.3600, a few points below the year-to-date high of 1.3630.

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The GBP/USD pair will be in the spotlight as the UK and the US are set to publish important economic data this week. The US will go first as the statistics agency releases the latest retail sales, manufacturing, and industrial production data.

These numbers are expected to show some weakness because of Donald Trump's tariffs on imported goods. For example, analysts anticipate monthly retail sales data moving from 0.1% in April to minus 0.7% in May.

The UK will next publish the latest consumer and producer inflation data in May. Economists expect the data to show that the headline consumer price index (CPI) slowed from 3.5% in April to 3.4% in May.

Core inflation, which excludes the volatile food and energy prices, is expected to come in at 3.6%, down from the previous 3.8%.

The GBP/USD exchange rate will next react to the upcoming Federal Reserve and Bank of England interest rate decisions. Economists expect the Fed to leave interest rates unchanged as it observes the impact of Trump's tariffs on inflation.

While analysts expect the BoE to leave rates unchanged, there is a likelihood that officials will cut rates if inflation falls. Reports released last week showed that the labor market softened in April, while the economic growth has stalled.

EURUSD Chart by TradingViewGBP/USD technical analysis

The daily chart shows that the GBP/USD pair has been in a steady uptrend in the past few months, moving from a low of 1.2100 in January to 1.3631 last week.

The 50-day and 100-day Exponential Moving Averages have supported the uptrend. Also, the pair formed a cup-and-handle pattern, a popular continuation sign in technical analysis.

The pair has formed a rising wedge pattern, a popular bearish reversal sign comprising of two ascending and converging trendlines. With the two lines nearing their confluence, there is a likelihood that it will retreat, and possibly retest the support at 1.3435.

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