The GBP/USD pair dropped as low as 1.2560 today where it found temporary support. The currency pair plunged as the Dollar Index has managed to rebound. DXY's further growth should force the USD to dominate the currency market. Technically, the currency pair found strong resistance, so a temporary drop is natural.
Earlier, the USD received a helping hand from the US CB Consumer Confidence which came in at 106.4 above 103.9 estimates. Also, the S&P/CS Composite-20 HPI and the Chicago PMI came in better than expected as well.
On the other hand, the UK Net Lending to Individuals, Mortgage Approvals, and the M4 Money Supply reported worse than expected data today.
GBP/USD Minor Rebound!Unfortunately for the USD, the Dollar Index drops at the time of writing, that's why we have the current rebound in GBP/USD. Technically, the pair failed to stay above the 1.2638 or to make a new higher high signaling exhausted buyers.
Now, the sellers weren't able to keep the rate below the weekly pivot point of 1.2590, so the price could come back to challenge the resistance levels again.
GBP/USD Outlook!A new lower low, a bearish closure below 1.2560 could activate more declines and could bring selling opportunities.
A new higher high, a valid breakout above 1.2666 could confirm an upside continuation and could bring buying opportunities.