The GBP/USD pair is trading at 1.2138 at the time of writing and it seems determined to hit new lows. In the short term, it has tried to rebound as the Dollar Index retreated a little. Now, the DXY rallied, boosting the greenback. The bias remains bearish despite temporary rebounds.
Fundamentally, the UK Average Earnings Index registered a 8.1% growth versus the 8.3% growth estimated. On the other hand, the greenback is strongly bullish as the Retail Sales, Core Retail Sales, Industrial Production, and Capacity Utilization Rate came in better than expected.
GBP/USD Trading In The Red!
As you can see on the H1 chart, the rate failed to stay above the 1.22 psychological level in the last attempt and now it has dropped below the lower median line (lml) which represented a dynamic support.
Technically, the former low of 1.2122 represents a downside obstacle. It remains to see how it reacts around it.
GBP/USD Forecast!
Dropping and closing below 1.2122 is seen as a selling opportunity as the GBP/USD pair activates more declines. The warning line (wl1) stands as a potential target.
