FX.co ★ GBP/USD Pin Bar Indicates Rebound

The GBP/USD pair dropped to as much as 1.3272 in yesterday's session where it found support. At the time of writing, it is traded at 1.3426. As you already know, a rebound was natural after yesterday's massive drop. The rate could come back to test and retest the near-term resistance levels before dropping deeper.

Fundamentally, the UK Gkf Consumer Confidence dropped further from -19 to -26 points this morning. Do not forget that volatility is high amid geopolitical tensions, so anything could happen.

Later today, the US is to release important economic data that can have some impact on GBP/USD. The Core PCE Price Index may report a 0.5% growth, Durable Goods Orders are expected to rise by 1.1%, while the Core Durable Goods Orders could report a 0.4% growth. Furthermore, the Personal Income, Personal Spending, Revised UoM Consumer Sentiment, and the Pending Home Sales will be released as well.

GBP/USD Exhausted Sellers

GBP/USD found resistance at the range of 1.3627. A breakout of this range announced a deeper drop. As you can see on the H4 chart, the price registered a false breakout with great separation below the ascending pitchfork's lower median line (LML) which represents dynamic support.

Still, the rebound could be only a temporary one and could bring new short opportunities. It is hard to believe that the GBP/USD pair could develop a larger growth. In the short term, a rebound was expected.

GBP/USD Outlook

After registering a false breakdown below the lower median line (LML), the pin bar, a rebound was natural. Personally I will search for new short opportunities after the rebound ends. 1.3483 stands as a strong upside obstacle. False breakouts above it or a major bearish pattern printed near this level may announce a new bearish momentum.