FX.co ★ GBP/USD: larger correction below 1.2473

The GBP/USD pair ended its leg higher at 1.2557 and now it has turned to the downside and is located at 1.2477 at the time of writing. The Dollar Index's rally helped the USD to take the lead versus its rivals.

Fundamentally, the UK CBI Industrial Production Order Expectations came in at -35 points versus -25 points expected. Earlier, the US Unemployment Claims came in better than expected, white Durable Goods Orders and Core Durable Goods Orders reported poor data. Still, the Revised UoM Consumer Sentiment came in at 61.3 points above the 61.1 points expected and compared to the 60.4 points estimated, that's why the USD could appreciate.

GBP/USD Rising Wedge Violated!

Technically, the currency pair failed to retest the Rising Wedge's upside line signaling exhausted buyers. Now, it has registered an aggressive breakdown through the confluence area formed at the intersection between the uptrend line with the 1.2504 static support.

Still, after this sell-off, we cannot exclude a temporary rebound as the rate could come back to test and retest the broken uptrend line.

GBP/USD Outlook!

Now, it challenges the former low of 1.2468, a bearish closure below activates more declines and is seen as a selling opportunity.