GBP/USD Uptrend Continues as ADX Hits Highest Level Since July

The GBP/USD pair has been in a strong uptrend over the past few days, and technical analysis suggests it will continue rising. The Average Directional Index (ADX) has reached its highest level since July 16, indicating that the trend is strengthening. An inverted head-and-shoulders pattern has also formed, which is a common bullish reversal sign.

The pair has been trading above the 50-day moving average and has jumped to 1.3510, its highest point since July 16. The next key resistance level for bulls is 1.3652, which is the highest level reached on May 1. To trade this view, investors can buy the GBP/USD pair with a take-profit at 1.3652 and a stop-loss at 1.3400.

The labor market in the US has not been as strong as expected, with last week's nonfarm payrolls (NFP) report showing a loss of 23k jobs in July. This is contrary to the estimated additions of 85k. The next important data point to watch will be the US consumer inflation report, which could impact the Federal Reserve's decision on interest rates.