The GBP/USD pair plunged in the short term after the UK inflation data. Now, it has reached a strong support zone, so we cannot exclude a new leg higher. Today, the US and UK data came in mixed. The currency pair remains under massive downside pressure as the Dollar Index is bullish despite temporary retreats.
The UK Flash Services PMI increased unexpectedly from 60.5 to 61.0 points, even if the specialists expected a potential drop to 58.0 points. The indicator signaled that the expansion continues. On the contrary, the Flash Manufacturing PMI was reported at 55.5 points below 57.0 expected.
The US Flash Services PMI, Flash Manufacturing PMI, and the Unemployment Claims came in better than expected. Still, the USD failed to dominate the currency market in the short term. Durable Goods Orders registered a 2.2% drop versus 0.5% expected, while the Core Durable Goods Orders dropped by 0.6% even if the specialists expected a 0.5% growth.
GBP/USD Bearish Pressure!
GBP/USD is still trapped within an up channel. As long as it stays above the uptrend line, the currency pair could develop a new bullish momentum anytime. Staying on the uptrend line may announce an imminent breakdown.
Technically, the up-channel could represent a bearish pattern. The rebound could be only a temporary one. A valid breakdown from the current pattern could signal potential declines.
GBP/USD Outlook!
A new lower low, dropping and closing below 1.3156 could activate a downside movement. In the short term, it's trapped between 1.3156 and 1.3213 levels. A new higher high, a valid breakout above 1.3213 could activate a new bullish momentum.
New short opportunities could appear if the rate drops and stabilizes below the median line (ml) of the ascending pitchfork.
