- Despite temporary rebounds, the GBP/USD pair maintains a bearish bias in the short term.
- Stabilizing below the median line (ml) could announce more declines.
- After worse-than-expected US data on Friday, a rebound was natural.
The GBP/USD price slumped in the last hours. The pair is trading at 1.2157 at the time of writing. It has climbed as high as 1.2241 today, registering a new high. However, it has failed to stay around this level as the USD strongly recovered the losses.
Fundamentally, the currency pair tried to jump higher as the US reported poor economic figures on Friday. The Flash S
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On the other hand, the UK Flash Services PMI jumped from 48.8 to 50.0, while Flash Manufacturing PMI dropped from 46.5 to 44.7 points.
Today, the Pound received a helping hand from the CBI Industrial Order Expectations, which came in at -6 points versus the -10 points expected. The BoJ is expected to keep the BoJ Policy Rate at -0.10% tomorrow. This is seen as a high-impact event and could have an impact on the USD as well.
Furthermore, the US is to release the Housing Starts, expected at 1.40M below 1.43M in the previous reporting period, and the Building Permits, the indicator could drop from 1.51M to 1.48 M. The markets could also be shaken by the Canadian CPI and the US CB Consumer Confidence on Wednesday.
GBP/USD price technical analysis: Sellers emerging below 1.2200
Technically, the price is trapped between 1.2223 and 1.2156 levels. Breaking the range could bring us new trading opportunities. Now, it challenges the median line (ML) of the descending pitchfork and the 1.2156 support.
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After dropping and stabilizing below the uptrend line, the price action signaled a potential downside reversal. So, stabilizing below the median line, the GBP/USD pair could extend its downside movement. After its last sell-off, a minor rebound was natural. It has tried to test the immediate resistance levels before dropping again.
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