Pressure returned in GBP/USD after the UK reported a weak GDP data for the 1st quarter. Many became worried because the figure indicates that the economy is entering a recession. The divergence in the ratio of interest rates between the Fed and the Bank of England, as well as increased expectations of a more aggressive Fed rate hike in June, could lead to a further fall in the pair.
technical picture:
The quote is below the middle line of the Bollinger indicator, above the SMA 5, but below the SMA 14. The relative strength index (RSI), meanwhile, is below 50% but is moving up, while the stochastic indicator is showing a reversal above the oversold zone.
Possible dynamics:
The pair may correct to 1.2260 and then resume falling to 1.2100.
