- The bias is bearish despite temporary rebounds.
- The US data boosted the greenback.
- The median line (ML) is seen as a major target.
The GBP/USD price slipped in the last hour, reaching a new low of 1.2600.
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The pair is trading at 1.2608 at the time of writing, far below today’s high of 1.2666. In the short term, the bias is bearish as the Us dollar rallied and attempted to resume its growth.
DXY’s upside continuation should force the USD to appreciate versus its rivals.
The greenback is strongly bearish in the short term as the US reported better than expected figures during the week.
Earlier, the US Final GDP reported a 2.0% growth beating the 1.4% growth expected and compared to the 1.3% growth in the previous reporting period, and Unemployment Claims dropped from 265K to 239K in last week far below 264K estimated.
Later, the US Pending Home Sales is expected to report a 0.5% drop versus 0.0% growth in the previous reported period. Positive US data could support the USD.
Tomorrow, the US is to release the Core PCE Price Index and the Revised UoM Consumer Sentiment, while the UK publishes the Current Account, Final GDP, and revised Business Investment.
GBP/USD Price Technical Analysis: Selling bias
From the technical point of view, the GBP/USD pair retested the weekly S1 (1.2650), registering only false breakouts and then extended its sell-off.
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It has dropped below yesterday’s low of 1.2606 activating more declines. The next downside obstacle and target is represented by the weekly S2 (1.2590).
Taking out this static support opens the door for a larger drop. The weekly S3 (1.2500) and the median line (ML) are seen as major downside targets if the price continues to drop. Minor rebounds could bring new short opportunities.
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