A new lower low could really activate a larger downside movement. DXY’s further growth should force the USD to dominate the currency market. After its massive drop, we cannot exclude a minor rebound. The GBP/USD price plunged as the Dollar Index accelerated its growth. The currency pair was trading at 1.2203 at the time of writing. It seems vulnerable to slide further. -Are you interested in learning about forex tips? Click here for details- Technically, the price is strongly bearish. DXY’s further growth should force the USD to dominate the currency market, so the GBP/USD pair could approach new lows. As you already know from my previous analyses, the price was expected to come back down after escaping from a Rising Wedge pattern and reaching a resistance area. Fundamentally, the USD was boosted by the US inflation data on Friday. The CPI rose by 1.0% in May versus 0.7% expected, while the Core CPI surged by 0.6% exceeding the 0.5% growth forecasted. Higher than expected inflation forces the Federal Reserve to act in the next monetary policy meetings. 50-bps rate hikes are expected. That’s why the USD rallies. Today, the UK’s GDP came in worse than expected. The GDP dropped by 0.3% versus a 0.2% growth estimated, Goods Trade Balance was reported at -20.9B below -20.3B expected, Index of Services rose by 0.0% compared to 0.1% growth forecasted, Industrial Production registered a 0.6% drop even if the traders expected a 0.3% growth. In comparison, Manufacturing Production dropped by 1.0% versus a 0.3% growth. Get FREE Forex Signals Now! GBP/USD price technical analysis: Bears pouncing 1.2200 The GBP/USD pair activated a larger downside movement after making a new lower low, after dropping and closing below the 1.2430 former low. -Are you interested in learning about the forex basics? Click here for details- It has also ignored the 1.2247 strong support. The next downside target is represented by the 1.2165 former low. It remains to see how it will react around this level. A valid breakdown may signal a downside continuation. Only false breakdowns or a strong bullish pattern could announce a temporary rebound. Actually, after this massive drop, a bounce-back could take shape, but it’s premature to talk about something like this. A new lower low, making a valid breakdown below 1.2165, could confirm a larger downside 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 Majors share Read Next USD/CAD Outlook: Soaring to 1.29 Despite Oil Rally Ignored, Eying Fed Saqib Iqbal 8 months A new lower low could really activate a larger downside movement. DXY’s further growth should force the USD to dominate the currency market. After its massive drop, we cannot exclude a minor rebound. The GBP/USD price plunged as the Dollar Index accelerated its growth. The currency pair was trading at 1.2203 at the time of writing. It seems vulnerable to slide further. -Are you interested in learning about forex tips? Click here for details- Technically, the price is strongly bearish. DXY’s further growth should force the USD to dominate the currency market, so the GBP/USD pair could approach new lows.… Regulated 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.