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The calendar is pretty light on economic releases but that doesn’t mean we shouldn’t take a look at the major dollar pairs!

Today I’m looking at GBP/USD’s possible short-term upside breakout.

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Oil prices drop amid China COVID curbs, possible rate hikes

NZ tourist arrivals exceed 100,000 in July

Dollar falls on hawkish ECB, CPI data eyed

China reports 1,094 new COVID cases for Sept 11 vs 1,303 day earlier

UK July GDP up by 0.2% vs. 0.3% expected, -0.6% in June

UK’s industrial production dips by 0.3% vs. 0.4% expected, -0.9% in June

UK manufacturing production improves by 0.1% vs. 0.3% expected, -1.6% previous

Upcoming Potential Catalysts on the Forex Economic Calendar:

Italy’s industrial production at 8:00 am GMT
Japan’s BSI manufacturing index at 11:50 pm GMT
AU NAB business confidence at 1:30 am GMT (Sept 13)

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: GBP/USD

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

After being in a downtrend for weeks, GBP/USD has finally broken above a trend line resistance in the 1-hour time frame.

What makes the setup more interesting today is that the trip above the 1.1600 psychological handle also means that GBP/USD is now trading above the 100 and 200 SMAs on the chart.

Is Cable about to see a short-term reversal?

The economic calendar is pretty light on data releases, so overall risk sentiment will likely play a big part in moving the majors in the next trading sessions.

Look out for the 100 SMA crossing above the 200 SMA, which could bring more bulls to GBP’s yard.

Of course, if traders focus on Uncle Sam’s CPI release later this week and the prospect of the Fed maintaining its hawkish course, then USD could return to its uptrend against its major counterparts.

In case of increased dollar demand, GBP/USD could drop back below its trend line resistance and revisit its September lows below 1.1500.

Watch this one closely, yo!