GBP/USD rebounded and it stands at the 1.3629 level. Still, the pressure is high and the pair could drop again anytime. DXY's (Dollar Index) further growth should help the greenback to increase versus its rivals.
The UK Public Sector Net Borrowing was reported higher at 22.0B versus 21.5B estimate and compared to 19.9B in the previous reporting period. The outlook is bearish, only the UK and US manufacturing and services data could change the sentiment on Friday.
GBP/USD Temporary Rebound!
GBP/USDincresaed a little but it has found resistance at the 150% Fibonacci line and now drops towards the ascending pitchfork's lower median line (LML). 1.3566 and the LML are seen as support levels.
Personally, I've drawn an ascending pitchfork hoping that I'll catch an upwards movement. False breakdown with great separation through the immediate support levels, or major bullish engulfing could bring a bullish momentum.
Trading Conclusion!
The 1.3566 is seen as critical support. We could search for long opportunities around this level. GBP/USD could develop a new leg higher if the DXY develops a downside movement.
Technically, a sideways movement above the lower median line (LML) could signal a potential strong rebound. Dropping and stabilizing below the downside obstacles signals a larger drop.
