The GBP/USD pair is trading in the red at 1.2603 at the time of writing. You knew from my previous analysis that the bias remains bearish in the short term. After yesterday's massive drop, the currency pair tries to rebound. As you already know, the USD was boosted by Final GDP and Unemployment Claims figures in the last trading session.
Today, the UK reported mixed economic data again, which weakened the Pound. The Current Account came in at -10.8B versus -9.8B expected. Later, the US Core PCE Index is expected at 0.3% while Revised UoM Consumer Sentiment could remain steady at 63.9.
GBP/USD Temporary Rebound!
Technically, the GBP/USD pair rebounded after reaching the weekly S2 (1.2590) but it has failed to approach and reach the weekly S1 (1.2650). Now, it has dropped again below the median line (ml) and challenges the 1.2606 static support.
Stabilizing below the median line (ml) and making a new lower low activates more declines. Still, it remains to see how it reacts around the S2 (1.2650).
GBP/USD Forecast!
Dropping and closing below S2 (1.2590) is seen as a selling signal with a potential downside target at the lower median line (lml).
