The GBP/USD pair plunged at the time of writing. It was located at 1.2026 far below 1.2106 today's high. The USD took the lead in the short term only because DXY rebounded. Today, the UK Nationwide HPI reported a 0.1% drop versus the 0.7% drop expected.
Fundamentally, the Dollar Index rebounded and boosted the greenback also because the US Chicago PMI jumped from 37.2 to 44.9 points above the 40.1 points expected.
GBP/USD seems undecided
Technically, the GBP/USD is still trapped between the 1.1991 and 1.2126 levels. I mentioned this range in yesterday's analysis. In the short term, it could extend the current range. Still, it cannot move indefinitely sideways, so escaping from this pattern should bring us new opportunities.
A false downside breakout may announce a new bullish momentum toward the range's resistance area.
GBP/USD Outlook!
A valid breakdown below 1.1991 activates more declines and brings new selling signals.
A valid breakout above 1.2126 may confirm an upside reversal, this is seen as a long opportunity.
