GBP/USD dropped but it seems a little oversold. It has tested and retested dynamic support and now it could try to increase again. The pair has printed something like a minor Falling Wedge pattern.
The pair is still under pressure, it remains to see how it will react tomorrow after the UK data. The United Kingdom GDP is expected to increase by 1.5%, the Industrial Production could register a 1.3% growth after a 1.3% drop in the previous reporting period, while the Manufacturing Production is expected to rise by 0.9%.
GBP/USD Downside Seems Limited!
GBP/USD has managed to stay above the descending pitchfork's upper median line (uml). It's also located above the 1.3731 static support. It could start increasing as long as it stays above this static support.
The immediate resistance is seen at the 150% Fibonacci line of the descending pitchfork. Jumping and stabilizing above it could signal more gains in the upcoming period. On the other hand, dropping below 1.3731 and under the weekly S1 (1.3724) could bring is a new selling opportunity.
Outlook!
We may have a buying opportunity if the pair jumps and stabilizes above the weekly pivot point (1.3832). The major upside target is seen at the 1.4001 level. GBP/USD could climb towards this obstacle after failing to reach the descending pitchfork's median line (ml).
