Is GBP/USD Rebound Over?

GBP/USD is trading in the red at 1.3769 level after its failure to stabilize above 1.38 psychological level. The selling pressure remains high as the pair stands below a downtrend line, so a deeper drop won't be a surprise.

The US CB Consumer Confidence could bring life on GBP/USD today. The economic indicator is expected to increase from 91.3 to 96.9 points. Positive economic figures reported by the United States could send the pair down again.

The ADP Non-Farm Employment Change, Unemployment Claims, ISM Manufacturing PMI, Non-Farm Employment Change, Unemployment Rate, and the Average Hourly Earnings could shake the markets.

GBP/USD Vulnerable To Slide Further!

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GBP/USD is located under the black downtrend line, so the bias is bearish. The rate pressures the uptrend line, dropping and stabilizing below it signals a potential sell-off.

The pair has dropped after retesting the upside 50% Fibonacci line and now is traded under the Pivot Point (1.3776). Comin back above the pivot point could signal a potential increase in the short term approaching the downtrend line.

GBP/USD has found support on the S1 (1.3675) level, so the rebound was somehow expected.

Outlook & Tips!

Sell a bearish closure under 1.3754 today's low and use the S1 (1.3675) as the first downside target.

A buying opportunity may appear if GBP/USD jumps and stabilizes above the black downtrend line.

The material has been provided by InstaForex Company - www.instaforex.com

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