FX.co ★ GBP/USD natural rebound!

GBP/USD increased a little in the short term but the pressure remains high, so the price could go down anytime again. Still, it remains to see how large the DXY correction will be. The pair has rounded as the Dollar Index has finally retreated.

The Pound received a helping hand from the UK Current Account which was reported at -8.6B versus -15.8B expected and versus -8.9B in the previous reporting period, while the Final GDP rose by 5.5% versus 4.8% growth expected. In addition, the Revised Business Investments come in better than expected as well, only the Nationwide HPI reported worse than expected data.

In the short term, the USD could still drop if the DXY drops deeper after printing a major bearish engulfing on the H4 chart. As you already know, the US Unemployment Claims and the Chicago PMI have reported worse than expected data earlier today, so the USD is still vulnerable.

GBP/USD Under Massive Pressure!

Tomorrow, the US is to release high-impact data such as the ISM Manufacturing PMI and the Core PCE Price Index. The fundamentals will move the price at the end of the week, so you should be careful.

GBP/USD failed to stay under the downside 50% Fibonacci line and below the weekly S3 (1.3458) and now is fighting hard to climb higher. It has increased as much as 1.3517 level where it has found resistance.

Technically, the pressure remains high as long as the DXY maintains a bullish bias and as long as the price stays under the descending pitchfork's median line (ml).

GBP/USD Forecast!

A temporary rebound was expected after the last sell-off. The rebound could help the sellers to catch a new leg down. The H4 spike signals strong sellers. Still, the GBP/USD pair could still try to increase.

Its false breakout with great separation through 1.3514 and above 1.3482 historical levels signaled that GBP/USD could turn to the downside. A sideways movement here could bring new short opportunities.