The GBP/USD pair climbed as much as 1.2507 today registering a new high, Now, it has turned to the downside and is trading at 1.2459. After its impressive rally, the retreat is natural. The price could try to test and retest the near-term support levels before jumping higher.
Fundamentally, the UK Public Sector Net Borrowing came in at 20.7B versus 20.5B estimated. Later, the CBI Industrial Order Expectations could be reported at -21 points. Still, the GBP/USD pair could register sharp movements only after the US data. CB Consumer Confidence is expected at 104.1, New Home Sales may drop from 640K to 633K, while Richmond Manufacturing Index could be reported at -8 points.
GBP/USD Natural Retreat!
Technically, the GB/USD pair escaped from the range between 1.2472 and 1.2353. Still, after its amazing rally, a retreat was expected. It has failed to stay above the R1 (1.2490) signaling exhausted buyers.
1.2472, 1.2443, and the upper median line (uml) represent immediate downside obstacles. As long as it stays above these support levels, GBP/USD could resume its growth.
GBP/USD Forecast!
Testing and retesting 1.2443 and the upper median line (uml), registering false breakdowns may announce that the retreat is over and that the buyers could take it higher again. This is seen as a new buying opportunity.
