The GBP/USD pair registered a massive drop in the last hours after DXY's rally. The bias was still bearish, so the further drop was imminent. It's trading 1.3240 above 1.3194 today's low. The pair tries to rebound after its amazing sell-off. A minor rebound could bring new short opportunities.
The currency pair ignored CB Consumer Confidence and Chicago PMI worse than expected data. Powell's remarks about Omicron risk, inflation, rate hike, bond-buying tapper boosted the USD.
You have to be very careful these days as the fundamentals will shake the markets and will bring sharp movements in both directions. The ADP Non-Farm Employment Change and the ISM Manufacturing PMI will be released tomorrow, while on Friday, the US is to release its Non-Farm Employment Change, Average Hourly Earnings, Unemployment Rate, and the ISM Services PMI.
GBP/USD 1.3200 Psychological Level!
GBP/USD plunged after failing once again to stabilize above the weekly pivot point of 1.3355 and above the 1.3353 static resistance (support turned into resistance). The current recovery could be only a temporary one.
As long as it stays under the 1.3300 psychological level, the GBP/USD could come back down towards the 1.3200 psychological level. Also, after its failure to come back to reach and retest the descending pitchfork's upper median line (UML), the pair could be attracted by the median line (ML).
GBP/USD Forecast!
GBP/USD maintains a bearish bias as long as it stays below the 1.3300 psychological level. Stabilizing below the 1.3259 could signal that the pair could approach and reach the 1.3194 today's low.
After the current sell-off, a minor rebound is natural. The bias is bearish, so a new sell-off is favored after ending a temporary bounce back.
The material has been provided by InstaForex Company - www.instaforex.com