GBP/USD Forex Signal 17/09: Bullish Forecast Ahead (Chart)

(MENAFN- Daily Forex) Bullish view

• Buy the GBP/USD pair and set a take-profit at 1.3800.
• Add a stop-loss at 1.3550.
• Timeline: 1-2 days

Bearish view

• Sell the GBP/USD pair and set a take-profit at 1.3550.
• Add a stop-loss at 1.3800

The GBP/USD exchange rate continued its strong uptrend, reaching its highest level since July after the US published a stronger-than-expected jobs report and as traders waited for the upcoming Fed and Bank of England interest rate decisions. It jumped to a high 1.3660, up by almost 4% from its lowest level in July UK and US Events Ahead

The GBP/USD pair has been in a strong uptrend in the past few weeks, a trend that continued this week. It rose after the US published better-than-expected data.

According to the Commerce Department, the volume of retail sales in the US rose by 0.6% in August, higher than the median estimate of 0.2%. This volume figure translated to an annual figure of 5%, which was better than the expected 4.1%.

Excluding autos, retail sales rose by 0.7% in August, which was higher than the expected 0.5%. These numbers mean that consumer spending has been strong in the past few months, even as the country's inflation continued rising.

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More US data showed that the manufacturing and industrial production continued rising last month. All these numbers will be important as the Federal Reserve delivers its interest rate decision later on Wednesday. Economists expect the bank to slash interest rates by 0.25% and signal another one or two cuts this year.

The GBP/USD pair reacted mildly to the latest UK jobs numbers, which showed that the unemployment rate rose from 4.6% in June to 4.7% in the previous month.

Looking ahead, the next UK catalyst will be the upcoming inflation numbers and the Bank of England decision. Economists expect the upcoming data to show that UK inflation remained at 3.8%, while the core CPI dropped slightly from 3.8% to 3.6%.

EURUSD Chart by TradingViewGBP/USD Technical Analysis

The daily timeframe chart shows that the GBP/USD exchange rate has rebounded in the past few weeks, moving from a low of 1.3140 in August to a high of 1.3660, its highest level in July.

It recently jumped above the important resistance level at 1.3610, the upper side of the inverse head-and-shoulders pattern.

The pair has moved above the 50-day moving average, while the Relative Strength Index (RSI) has jumped above the neutral point at 50. Also, the MACD indicator has continued rising, a sign that it is gaining momentum.

Therefore, the pair will likely continue rising as bulls target the next key resistance level at 1.3800.

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