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GBP/USD Forex Signal: Inverse C&H Pattern Signals Breakout
While the pair has formed a small bullish flag pattern, there is a possibility that it will break out lower in the near term.
Bearish View
Bullish View
The GBP/USD price is in a holding pattern as the month comes to an end. The pair is trading at 1.3760, which is in the same range it has been in the past few trading sessions. The price is about 1.45% below the highest point in August.
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Sterling in a Holding Pattern
The GBP/USD was in a relatively tight range in the overnight session as investors continued reflecting on the statement by Jerome Powell, the Federal Reserve chairman. In the statement at the Jackson Hole Symposium, the chairman said that the bank will likely start tapering its asset purchases in the coming month so long as the economy maintains its recovery process. This statement was seen by many analysts as being relatively dovish.
On Monday, the pair reacted to the latest pending home sales numbers by the National Association of Realtors. The data showed that pending home sales declined by 1.8% in July after falling by another 2% in the previous month. This decline was worse than the median estimate of 0.4%. The pending Home Sales Index declined from 112 to 110. Still, the American housing sector is relatively strong as evidenced by the recent new and existing home sales numbers.
