FX.co ★ GBP/USD buyers seem exhausted, 1.1889 as resistance

The GBP/USD pair rebounded in the short term but the throwback could be only a temporary one. It was traded at 1.1810 at the time of writing and it seems heavy again as the Dollar Index stays higher.

Today, the fundamentals could move the market. The Core PCE Price Index and Fed Chair Powell' Speech are seen as high-impact events, so anything could happen. In addition, the Revised UoM Consumer Sentiment is expected at 55.3 versus 55.1 in the previous reporting period. Personal Income could report a 0.6% growth, while Personal Spending may register a 0.4% growth.

GBP/USD Bearish Pattern

The price rebounded but failed to reach the 1.1889 key level. It has developed a potential Rising Wedge pattern in the short term. The 1.1878 level represents an upside obstacle. On the other hand, the uptrend line represents dynamic support.

Technically, the bias is bearish despite the current rebound. Actually, the throwback could bring us new short opportunities.

GBP/USD Prediction

Staying above the uptrend line and making a valid breakout above 1.1889 could activate further growth.

A valid breakdown below the uptrend line and a new lower low could confirm a potential drop towards 1.1700.