The GBP/USD pair rebounded as the US dollar Index invalidated a potential leg higher. DXY's sell-off forced USD to depreciate versus its all rivals. As you already know from my previous analysis, GBP/USD is moving sideways within a range pattern.
Later, you have to be careful as the UK is to release its inflation data. The fundamentals will drive the price, anything could happen. The Core Price Index is expected to come in at 5.4%, while the Core CPI could register a 4.3% growth.
Do not forget that the US retail sales figures could bring sharp movements as well. The Retail Sales indicator may report a 2.1% growth versus 1.9% drop in the previous reporting period, while the Core Retail Sales is expected to register a 1.0% growth.
GBP/USD Bearish Pressure!
As you can see on the H4 chart, the pair registered a new false breakdown with great separation below the 1.3504 static support. It may hit the downtrend line which stands as a dynamic resistance.
The 1.3560 weekly pivot point stands as a static resistance. Only a valid breakout above these immediate obstacles may announce potential further growth. On the contrary, registering only false breakouts could signal a new sell-off.
GBP/USD Outlook!
A new higher high, jumping and closing above the 1.3566 yesterday's high could activate an upside continuation at least towards 1.36 psychological level.
Only a valid breakdown below 1.3504 could bring a new selling opportunity.
