The GBP/USD pair crashed after the US economic data and now is located at 1.2689 at the time time of writing, far below today's high of 1.2738. In the short term, a rebound was natural but the bearish pressure remains high, so further drop is in cards.
Fundamentally, the rate rallied in the Eurozone session as the UK GDP, Prelim GDP, Construction Output, Goods Trade Balance, Index of Services, Industrial Production, Manufacturing Production, and Prelim Business Inventories came in better than expected.
Now, the greenback took the lead again after the US PPI and Core PPI indicators reported positive data. The USD would dominate the currency market if the US Prelim UoM Consumer Sentiment comes in better than expected as well.
GBP/USD Sell-Off!
Technically, the GBP/USD pair escaped from the up channel pattern signaling more declines. After its strong growth, the pair tried to retest the broken uptrend line and the weekly pivot point of 1.2740.
Its failure to reach these levels confirmed strong sellers. Now, it could hit the 1.2669 former low which stands as a static support.
GBP/USD Forecast!
Dropping and closing below 1.2669 activates more declines. This scenario is seen as a selling opportunity. The 1.2591 represents a downside target.
