The GBP/USD pair could drop towards the 61.8% retracement level after dropping below the channel’s support. The lower median line (LML) of the ascending pitchfork stands as a major downside target. The bias remains bearish as long as it stays under the channel’s downside line. The GBP/USD forecast sees the pair extend its downside movement as the Dollar Index has managed to hit new highs today. It’s traded at 1.3452 level at the time of writing above 1.3444 today’s low. Technically, the bias remains bearish in the short term as the price ignores strong downside obstacles. Still, in the short term, the currency pair could rebound and recover a little after the current massive drop and after poor US data reported earlier today. Get FREE Forex Signals Now! 3 Free Forex Every Week – Full Technical Analysis The price could come back to test and retest the immediate resistance levels before dropping deeper. A temporary rebound could help the sellers to catch a new bearish momentum. Fundamentally, the UK and US data came in worse than expected today, so the GBP/USD pair remains bearish. The United Kingdom Flash Services PMI was reported at 53.3 below 53.9 estimates, while the Flash Manufacturing PMI dropped from 57.9 to 56.9 far below 57.7 expected. Surprisingly or not, the USD remains strongly bullish even if the US Flash Manufacturing PMI was reported at 55.0 versus 56.9 expected while the Flash Services PMI dropped unexpectedly lower from 57.6 to 50.9 points below 54.9 forecasts signaling a strong slowdown in expansion.  If you want to get involved with automated forex trading then check out our guide to getting started. GBP/USD Forecast: Price Technical Analysis – Corrective Phase The GBP/USD pair challenges the 50% (1.3454) and the weekly S2 (1.3452) level. A valid breakdown may announce more declines. As you can see on the H4 chart, the rate dropped below the channel’s downside line signaling that we could have a larger corrective phase. You knew from my analyses that the GBP/USD pair could develop a strong downside movement if it stabilizes below the ascending pitchfork’s median line (ML). Technically, the 61.8% (1.3385) represents a major downside obstacle if the price drops deeper. This level could stop the current sell-off. As long as it stays under the channel’s downside line, the pair could drop deeper also towards the ascending pitchfork’s lower median line (LML). This scenario could take shape only if the DXY extends its upwards movement. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Olimpiu Tuns Olimpiu Tuns Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms. View All Post By Olimpiu Tuns Daily LookMajors share Read Next AUD/USD Price Recovers Above 0.7150 amid Upbeat Q4 CPI Saqib Iqbal 3 months The GBP/USD pair could drop towards the 61.8% retracement level after dropping below the channel’s support. The lower median line (LML) of the ascending pitchfork stands as a major downside target. The bias remains bearish as long as it stays under the channel’s downside line. The GBP/USD forecast sees the pair extend its downside movement as the Dollar Index has managed to hit new highs today. It’s traded at 1.3452 level at the time of writing above 1.3444 today’s low. Technically, the bias remains bearish in the short term as the price ignores strong downside obstacles. Still, in the short… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.