The GBP/USD pair was trading at 1.1903 at the time of writing and it seems determined to resume its sell-off as the Dollar Index is strongly bullish. In the short term, the currency pair tries to rebound as the DXY retreated a little. DXY's further growth towards new highs should force the pair to drop.
Fundamentally, the USD received a helping hand from the US data earlier. The Final Services PMI came in at 52.7 points versus 51.6 expected, the JOLTS Job Openings indicator was reported at 11.25M versus 11.05 forecasts, while the ISM Services PMI dropped from 55.9 to 55.3 points but it has failed to reach 53.9 points as estimated. Later, the FOMC Meeting Minutes is seen as a high-impact event that could bring sharp movements.
On the other hand, the UK data came in mixed, Construction PMI came in at 52.6 points far below 54.9 expected and versus 56.4 in the previous reporting period, while the Housing Equity Withdrawal was reported at -6.9B above -10.3B forecasts.
GBP/USD In The Bearish Territory!
As you can see on the H1 chart, the pair rebounded in the short term but it has registered only false breakouts above the 1.1975 static resistance. It has also failed to stay above the median line (ml).
1.1933, the median line (ml), and the S1 (1.1940) are seen as immediate upside obstacles. The 1.1898 stands as static support.
GBP/USD Outlook!
Staying below the median line (ml) coming back and stabilizing below 1.1898 could signal a potential deeper drop. A new lower low, a bearish closure below 1.1875 here on H1 could activate more declines and could bring new selling opportunities with a potential downside target at the lower median line (lml).
