The GBP/USD pair crashed in the short term as the Dollar Index edged higher. It's trading at 1.2734 at the time of writing and it seems heavy. Still, the rate stands above important downside obstacles, so a new bullish momentum is still possible.
Today, the UK CBI Industrial Order Expectations and Public Sector Net Borrowing came in worse than expected. On the other hand, the US data came in mixed. Tomorrow, the fundamentals should move the rate as the UK and US are to release the Flash Manufacturing and Flash Services data. Positive UK data and poor US figures could bring a new rally.
GBP/USD Temporary Drop?
Technically, the rate found resistance at the 1.2792 again and now it has dropped again. The ascending pitchfork's lower median line (lml) and the weekly pivot point of 1.2710 represent key support levels.
As long as it stays above it, the rate could come back higher and may resume its growth. Failing to reach the median line (ml) in the last attempt announced exhausted buyers.
GBP/USD Forecast!
Testing and retesting the lower median line (lml), registering false breakdowns or failing to reach this dynamic support should announce a new bullish movement. Jumping and closing above the 1.2792 range's resistance is seen as a long opportunity.
On the contrary, dropping and closing below the lower median line (lml) and under the pivot point of 1.2710 brings a selling signal.
