FX.co ★ GBP/USD: oversold signs

The GBP/USD pair dropped as much as 1.2110 yesterday and now is fighting hard to rebound. It's located at 1.2139 at the time of writing and it seems undecided. The downside pressure remains high, so a broader rebound needs strong confirmation.

Yesterday, the currency pair extended its sell-off as the US Durable Goods Orders and Core Durable Goods Orders came in better than expected. Now, the price tries to rebound ahead of the US Final GDP, Unemployment Claims, Final GDP Price Index, and Pending Home Sales data. The Fed Chair Powell Speaks could shake the markets tonight as well. Poor economic figures could lift the pair.

GBP/USD Bullish Pattern!

GBP/USD is trapped between 1.2110 and 1.2153 levels. As you can see on the H1 chart, the rate escaped from the down channel pattern signaling that the sell-off ended and that we may have a reversal.

Still, it's premature to talk about an upside reversal as long as it stays below the 1.2153 former high.

GBP/USD Outlook!

Jumping, closing, and stabilizing above 1.2153 opens the door for a larger rebound. This could be seen as a long opportunity.