Search ForexCrunch
  • The GBP/USD pair could extend its sell-off if it makes a new lower low.
  • As long as it stays under the median line (ML), the price could drop deeper.
  • Coming back above the median line (ML) may signal that the downside movement is over.

The GBP/USD price drops as the USD finds a boost by the DXY’s growth. The Dollar Index is bullish. An upside continuation forces the greenback to dominate the currency market.

Are you interested in learning more about Canadian forex brokers? Check our detailed guide-

As you already know from my analyses, the GBP/USD pair is bearish, so more declines are expected. The price stands in the sellers’ territory. That’s why we can still search for selling opportunities.

Fundamentally, the UK Rightmove HPI and CBI Industrial Order Expectations worsened compared to the previous reporting period yesterday. Today, the Public Sector Net Borrowing was reported at 17.3B above 14.2B estimates.

Later, the US data could bring high volatility and strong moves. For example, the Durable Goods Orders could register a 1.0% growth versus a 2.1% drop in the previous reporting period. In comparison, Core Durable Goods Orders are expected to report a 0.5% growth in March.

In addition, CB Consumer Confidence could be reported higher at 108.5 points in April, above 107.2 in March. Finally, HPI is expected to register a 1.5% growth, while the New Home Sales indicator could appear at 774K.

GBP/USD price technical analysis: Bears keep the dominance

gbp/usd price

Technically, the GBP/USD pair retested the descending pitchfork’s median line (ML), representing a dynamic resistance (support turned into resistance). If it stays under level, the price could extend its downside movement.

Are you interested in learning more about high leveraged brokers? Check our detailed guide-

Testing this dynamic obstacle, registering only false breakouts may signal new declines. After its massive sell-off, the pair tried to rebound. Still, the downside pressure remains strong. The GBP/USD pair could drop deeper anytime.

A new lower low, dropping and closing below 1.2697, could open the door for a larger drop. This scenario could bring new short opportunities. On the contrary, staying above 1.2697 and coming back above the median line (ML) may signal that the downside movement ended and that the pair could try to rebound. Jumping and stabilizing above the median line (ML) followed by a new higher high, passing and closing above 1.2772 may signal potential growth in the short term.

Looking to trade forex now? Invest at eToro!

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