GBP/USD Forecast: Momentum Above 1.3265 Level To Support Bullish Outlook

The GBP/USD pair extended its rebound from last week's one-month lows and traded with a bullish bias for the fourth consecutive session. The pair's up-move to fresh weekly tops was supported by a sagging US Dollar, which remained on its back foot after the latest FOMC meeting minutes revealed policymakers' concerns over stubbornly low inflation. However, lack of progress at the ongoing fifth round of Brexit negotiations might now turn out to be a key risk for the pair's up-move in absence of any major UK macroeconomic data. Meanwhile, the US economic docket features the release of latest US PPI print and the usual weekly jobless claims, which would now be looked upon for some impetus ahead of Fed speeches.

From a technical perspective, the pair this week has managed to clear a short-term descending trendline hurdle and thus remains poised to extend its near-term appreciating move. A clear breakthrough its immediate resistance near the 1.3265 level, marked by 38.2% Fibonacci retracement level of the recent fall, would reaffirm the bullish bias and should lift the pair beyond the 1.3300 handle. The up-move is likely to confront fresh supply at 50% Fibonacci retracement level near the 1.3340-45 region.

On the flip side, 1.3220 area now seems to protect the immediate downside, below which the pair is likely to drift back below the 1.3200 handle towards 23.6% Fibonacci retracement level support near the 1.3175 region.