- The GBP/USD pair plunged after failing to stay above the pitchfork’s lower median line.
- A new lower low could activate a deeper drop.
- The median line (ML) could attract the price after its failure to reach the upper median line (UML).
Our GBP/USD forecast sees the pair extending its sell-off as the USD was boosted by the DXY’s growth. The pair is trading at 1.3372 above 1.3342 today’s low.
Technically, the price reached a support zone, a downside obstacle, so a potential rebound is favored. Still, you should know that the bias remains bearish, the GBP/USD pair could drop deeper anytime. The Dollar Index is trading in the red at the moment of writing, but it maintains a bullish bias.
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The British Pound dropped in the last hours even though the United Kingdom Flash Manufacturing PMI increased unexpectedly from 57.8 to 58.2 points. The specialists expected a potential drop to 57.2. In addition, the Flash Services PMI was reported at 58.6 points as expected, but below the 59.1 points in the previous reporting period.
The United States data could be decisive later. The Dollar Index is bullish, so better than expected economic figures could help the USD to appreciate. The Flash Services PMI is expected to grow from 56.7 to 59.1 points, while the Flash Manufacturing PMI could be reported higher at 59.3 points versus 58.4 in the previous reporting period.
GBP/USD Forecast: Price Technical Analysis – Support Zone
The GBP/USD pair extended its downside movement after failing to stay above the ascending pitchfork’s lower median line (lml). Now, it was almost to reach the ascending pitchfork’s warning line (wl1) which could represent a dynamic support.
It has dropped below 1.3353 former low but it has failed to stay there. Some poor US data and DXY’s drop could force the pair to come back higher, at least towards the 1.34 psychological level.
Technically, making a valid breakdown below the 1.3353 and below the warning line (wl1) could signal potential deeper drop.
After its failure to come back higher towards the major descending pitchfork’s upper median line (UML), the GBP/USD pair could approach the median line (ML) which stands as a dynamic support.
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