FX.co ★ GBP/USD: bearish pattern in play

The GBP/USD pair rebounded but the price action signaled exhausted buyers already. The price increased a little only because the Dollar Index was in a corrective phase in the short term. It was trading at 1.1704 at the time of writing and it seems under strong bearish pressure.

Fundamentally, the UK M4 Money Supply and the Mortgage Approvals came in better than expected while the Net Lending to Individuals was reported at 6.5B below 6.6B expected. On the other hand, the US HPI and the S&P/CS Composite-20 HPI came in worse than expected.

Later, the US CB Consumer Confidence is expected at 97.6 points while the JOLTS Job Openings could be reported at 10.37M.

GBP/USD Flag Formation!

Technically, the pair rebounded after its massive drop. The price action developed an up-channel pattern that could announce a downside continuation. Now, it is challenging the uptrend line and it could reach the 1.1685 static support as well.

Staying above these downside obstacles may signal new bullish momentum. It remains to see how it will react after the US high-impact data.

GBP/USD Forecast!

A valid breakdown below the uptrend line and through the 1.1685 may signal a deeper drop. Dropping, closing, and stabilizing below the S1 (1.1670) could bring short opportunities.