GBP/USD had been in a bearish bias after breaking the corrective structure support level at 1.2350. USD has been gaining strength since the start of the month and is still the dominant side in this pair. Today, on the GBP front BRC Retail Sales Monitor was released. The score for February came in at -0.4% y/y from -0,6% in the previous month, though the news had a minor impact on the market. Besides, Halifax HPI was forecasted to be positive at 0.4% but failed to meet the expectations and edged up just 0.1%. With the negative fundamental reports from the UK today, USD was top of its gain until a negative trade balance report was posted in the US. The report revealed trade deficit at $48.5B, more than the forecast of $47.0B. Now, the market is showing some bullish bias due to negative first-tier news for USD.
Now, let us look at the technical view, the pair has been facing massive sell-off after the break of the support area of 1.2350-90. After the break, there were no attempts to retest from the nearest horizontal resistance or dynamic resistance of 20 EMA. In light of the negative trade balance in the US, we are going through bearish rejection currently. If the market closes with a good amount of bearish rejection today, the price is expected to move back towards 1.2350 for a retest before moving further down towards the lower support at 1.2120.
