The GBP/USD pair advances towards its recent high, having extended its rally up to 1.5500 this Thursday, maintaining the strong upward tone seen on previous updates. There are no fundamental news scheduled in the UK for this Thursday, so the pair will likely continue trading according to dollar's self weakness/strength. Ahead of Wall Street opening, the US will release several macro figures, including September inflation readings, which if fail to meet expectations, should lead to another round of dollar's sell-off.
The pair broke above the 61.8% retracement of its latest bearish run during the previous American session, at 1.5445, and pullbacks towards the level are attracting buying interest. The technical picture suggest further gains are likely, as in the 4 hour chart, the technical indicators continue heading north, despite being in overbought territory.
There are some intraday highs and lows in the 1.5500/10 price zone, which means a price acceleration through the region is required to confirm additional gains, up to the 1.5550/60 area. Should the pair advance further above this level, the next probable bullish target comes at 1.5595. Below the mentioned Fibonacci support on the other hand, the downside corrective movement can extend down to 1.5380/90 where the next line of buyers is waiting.
View the live chart of the GBP/USD
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