- The bias is bearish despite a temporary rebound.
- The warning line (wl1) is seen as a potential target.
- The US data could bring strong action today.
The GBP/USD price is trading at 1.2178 at the time of writing. The pair has rebounded slightly. However, the downside pressure remains high. Hence, a deeper drop is favorable as the US dollar is bullish despite minor retreats.
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Fundamentally, the US dollar lost ground on Friday as the US Prelim UoM Consumer Sentiment came in at 63.0 points versus 67.2 points expected and far below 68.1 points in the previous reporting period.
Today, the United Kingdom Rightmove HPI came in better than expected. Still, only the US data could move the rate. The Empire State Manufacturing Index is expected to be at -6.4 points versus 1.9 points in the previous reporting period.
Also, the Canadian Wholesale Sales and Manufacturing Sales could have an impact on the greenback as well. Tomorrow, the UK Claimant Count Change, and the US retail sales should really shake the price. Also, don’t forget that the Canadian Consumer Price Index and the US Industrial Production will be released.
The UK inflation figures will also be released on Wednesday and could change the sentiment again.
GBP/USD Price Technical Analysis: 1.21 As Next Target
Technically, the GBP/USD price ended leg higher after failing to stay above the median line (ml). Now, it has dropped below the lower median line (LML), activating more declines. Now, the pair is fighting hard to rebound. It could try to reach and retest the weekly pivot point of 1.22.
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The bias remains bearish as long as it stays below the former high of 1.2225. The bounce-back mat represents a downside continuation pattern. The ascending pitchfork’s warning line (wl1) is seen as a potential target if the rate continues to drop.
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