GBP/USD Forecast: Move Beyond 1.3300 Handle Seems A Distinct Possibility

The US Dollar held weaker on Wednesday, with the GBP/USD pair gaining some positive traction for the seventh consecutive session and now making a fresh attempt to move past the 50-day SMA important barrier. The ongoing flattening of the US Treasury yield curve, led by sliding longer-term yields on low inflation expectations, was now seen weighing on the USD.

The British Pound was further supported by Tuesday's upbeat British CBI Industrial Order Expectations, an important barometer of the manufacturing sector, and the latest news report that the UK and EU aim to reach an agreement on the Brexit divorce bill within three weeks.

The pair, however, remained confined within a familiar trading range as investors now look forward to the UK government's autumn forecast statement, which would provide an update on the economic outlook and a preview of the budget for the coming year. Later in the day, the key release of US durable goods orders and the latest FOMC meeting minutes would further expose the pair to a fresh bout of volatility.

Technically, the pair has been trending higher over the past 10-days within a short-term ascending trend-channel formation on the 4-hourly chart but is now struggling to make it through 1.3265-70 barrier. A clear break above the mentioned hurdle is likely to accelerate the up-move and lift the pair beyond the 1.3300 handle to a 1-1/2-month-old trading range resistance near the 1.3320 region. A decisive move beyond the mentioned hurdle would confirm a fresh bullish breakout and pave way for extension of the pair's upward trajectory.

On the flip side, any pull-back from higher levels might continue to find support at the lower end of the ascending trend-channel, currently near the 1.3230 area. On a sustained weakness below the trend channel, the pair seems vulnerable to break below the 1.3200 handle and head towards the 100-day SMA support near the 1.3130-25 region. Some follow-through selling pressure has the potential to continue dragging the pair back below the 1.3100 handle towards testing the trading range support near the 1.3050-40 region.