GBP/USD dropped again as the US Dollar Index has managed to rebound after its sell-off. The pressure remains high on the GBP/USD, so we cannot exclude a potential drop. A temporary rebound was natural after the last downside momentum.
The Pound is still weak versus all its rivals despite the current rebound. The FED Chair Powell Testifies and the Existing Home Sales could bring more action on GBP/USD today. The pair has increased a little in the last hours as the UK Public Sector Net Borrowing and the CBI Industrial Expectations have come in better than expected.
GBP/USD Under Pressure!
GBP/USD has found support on the 78.6% level and now it has come back to retest the upside 50% retracement level of the descending pitchfork. It's located below the weekly pivot point (1.3907) level and under the 61.8% retracement level, so it could slip lower.
Right now we don't have a good opportunity, we'll have to wait for a fresh trading opportunity. It's in a neutral zone, but I really hope that we'll have something soon on this pair.
Forecast!
GBP/USD could drop again towards 1.38 if it stays under the 50% Fibonacci line of the descending pitchfork. Technically, a potential decline towards the 1.3786 former low is still in the cards.
