GBP/USD is trading in the red at 1.3722 level. It may drop deeper after failing to stay in the buyer's territory. It dipped below the immediate support levels signaling a potential major correction.
USD was into a corrective phase in the short term as the USDX plunged, but the greenback remains strong and it could take full control soon. GBP/USD decreased despite disappointing US initial jobless claims data released yesterday.
The figure has increased unexpectedly from 728K to 744 when experts had anticipated a drop to 682K.
GBP/USD Upside Is Limited!
GBP/USD declined below the major red uptrend line after its failure to consolidate above the downtrend line. Is now back within the down channel's body. The current valid breakdown below the ascending pitchfork's lower median line (lml) signals a new sell-off.
It's located also below the weekly S1 (1.3731) which represented strong support. Closing an H 4 candle below 1.3719 former low could represent a selling signal.
Forecast!
Closing and stabilizing below the S1 and under 1.3719 could bring a new selling opportunity with downside targets at the weekly S2 (1.3645) and S3 (1.3586).
