Blue lines- Fibonacci retracements
Black line- expected move direction
GBPUSD has so far retraced 50% of the rise from 1.0344 to 1.1494. Price has started to bounce higher but after the CPI announcement we see the Pound under pressure again. Price has so far formed a lower high and if Dollar continues to strengthen across the board, we should expect GBPUSD to form a new lower low most probably around the next key Fibonacci level at 1.0785. GBPUSD has support now at 1.0555 and a break below this level will increase chances of a move towards 1.0785. Today's high is an important resistance. Bulls will need to break above it in order to cancel short-term bearish scenarios.
