The GBP/USD pair turned to the downside in the short term and now is trading at 1.2436 at the time of writing. The downside pressure remains high even if the rate tries to rebound. DXY's larger growth should force the greenback to appreciate versus its rivals.
Fundamentally, the UK Halifax HPI rose by 0.8% even if the traders expected a 0.5% drop, while Construction PMI and Housing Equity Withdrawal came in worse than expected. On the other hand, the US Unemployment Claims came in worse than expected. Tomorrow, the NFP, Average Hourly Earnings, and Unemployment Rate represent high-impact events and could really shake the markets.
GBP/USD Retests The Broken Levels!
Technically, the rate is struggling to rebound and to come back above the inside sliding line (sl). The bias remains bearish as long as it stays below the upper median line (uml).
As you can see on the H1 chart, the rate dropped below the weekly R1 (1.2430) and under the sliding line (sl) signaling a potential larger drop. The GBP/USD pair turned to the downside after registering only false breakouts above the Rising Wedge's upside line.
GBP/USD Outlook!
Coming back and stabilizing below the R1 (1.2430), a new lower low (bearish closure below 1.2412) activates a deeper drop. This is seen as a new selling opportunity. The uptrend line represents a downside target.
