GBP/USD registered a strong downside movement as the USD was boosted by the DXY's rally. Still, the pair stands near a demand zone, so a temporary rebound is in the cards. In the short term, the Dollar Index could retreat after its amazing leg higher.
Today, the GBP/USD pair could be driven by fundamentals again. The UK Prelim GDP could report a 1.5% growth versus 5.5% in the previous reporting period, while the GDP could register a 0.4% growth.
Furthermore, the Goods Trade Balance, Construction Output, Index of Services, Industrial Production, Manufacturing Production, and the Prelim Business Investment indicators will be released as well.
GBP/USD Massive Drop!
Technically, the GBP/USD pair plunged after failing to stabilize above the downtrend line. You can see that the rate wasn't able to stay above the median line (ML) as well, signaling strong selling pressure.
It has escaped from the ascending pitchfork's body and now it challenges the 1.3411 support level. Anything could happen in this support area. Invalidating its breakdown below the 1.3411 level could signal a potential rebound.
On the other hand, stabilizing below this broken obstacle may announce more declines. The Pound could take the lead if the UK data will come in better than expected and if the DXY slips lower.
GBP/USD Forecast!
The GBP/USD pair could extend its downside movement if it stabilizes below the broken 1.3411. This scenario could take shape if the Dollar Index climbs higher and if the UK data disappoints later.
Also, we cannot exclude a temporary rebound after its major drop. It could come back towards the 1.3484 level before resuming its drop. A minor rebound could help us to catch new bearish movements.
