FX.co ★ GBP/USD: deeper drop seems confirmed

The GBP/USD pair crashed in the short term as the Dollar Index rebounded. Now, it is trading at 1.1800 at the time of writing, above the 1.1763 daily low. After its massive drop, a rebound was natural.

Fundamentally, the US data came in mixed today. Unemployment Claims, Building Permits, and Housing Starts came in better than expected, while Philly Fed Manufacturing Index came in worse than expected. Today, the FOMC members' speeches could have an impact as well.

GBP/USD Aims At 1.1645!

GBP/USD failed to take out the 1.1904 - 1.1958 resistance zone and now it has turned to the downside. Now, it challenges the 1.1790 former low which represents a downside obstacle.

After ignoring the immediate lows, the currency pair signaled strong downside pressure. Stabilizing below 1.1790 may signal more declines.

GBP/USD Outlook!

Staying below 1.1790 and dropping under today's low of 1.1763 activates a deeper drop toward the uptrend line and down to 1.1645. This scenario is seen as a short signal as well.