GBP/USD plunged after DXY's strong rally. Now it has found temporary support but the pressure is high and it could drop towards fresh new lows anytime. In the short term, the GBP/USD could come back to test and retest the broken support levels before resuming its drop.
From the technical point of view, the pair escaped from a major range, triangle pattern, so further drop is imminent after a temporary rebound. The UK M4 Money Supply, Mortgage Approvals, and the Net Lending to Individuals indicators will be released later. On the other hand, the US is to release its Pending Home Sales today.
Still, I believe that Fed Chair, BOE Gov, BOJ Gov, and ECB President speeches will move the markets today. These are seen as high-impact events anything could happen, so you should be careful.
GBP/USD In The Seller's Territory!
GBP/USD plunged through the former uptrend line, below 1.3602 lower low, and under the descending pitchfork's median line (ml). It has dropped as much as 1.3520 but it has managed to stay above the weekly S2 (1.3534) level.
It could come back to test and retest the descending pitchfork's median line (ml) before resuming its sell-off. The bias remains bearish if the pair stabilizes below the 1.3571 and under the median line (ml).
Also, the 1.3602 and the upside 50% Fibonacci line of the descending pitchfork are seen as strong resistance levels (support turned into resistance).
GBP/USD Forecast!
A temporary rebound could bring new selling opportunities. Registering false breakouts above the immediate resistance levels represent bearish signals. Also, dropping, closing, and stabilizing below 1.3534 S2 could activate further drop at least until the downside 50% Fibonacci line and down towards the 1.3458.
