The GBP/USD pair plunged today and it is located at 1.2024 at the time of writing. The bias is bearish in the short term, so more declines are in cards. Today, UK banks were closed in observance of Christmas Day.
Fundamentally, the US reported mixed data earlier today. Goods Trade Balance came in at -83.3B versus –96.2B and compared to -98.8B in the previous reporting period, HPI reported 0.0% growth versus -0.9%, while Prelim Wholesale Inventories registered 1.0% growth compared to the 0.4% growth forecasted.
Tomorrow, the US is to release the Pending Home Sales, and the Richmond Manufacturing Index indicators but I don't think that the economic data could have a significant impact.
GBP/USD Sell-Off!
Technically, the GBP/USD rebounded after reaching the 1.1991 level. It retested the 1.2106 static resistance and now it has turned to the downside. The false breakout through the confluence area formed at the intersection between the 1.2106 with the upside sliding line (sl1) announced that the rebound ended.
Then it dropped below the downside sliding line (sl) and it was almost to reach the 1.1991 static downside obstacle.
GBP/USD Forecast!
The GBP/USD pair could resume its downside movement and could bring new short opportunities after dropping and closing below the 1.1991 downside obstacle.
