29.05.2023 05:55 PM
GBP/USD: bearish pattern in play

The GBP/USD pair is moving somehow sideways in the short term. It's trading at 1.2346 at the time of writing and it seems determined to extend its downward movement. It could approach and reach new lows despite minor rebounds. Actually, short-term bounce-backs or range patterns could bring us new shorts.

GBP/USD tried to rebound on Friday as the UK Retail Sales reported a 0.5% growth, beating the 0.3% growth estimated. On the other hand, the US data came in mixed in the last trading session.

Today, the US and UK banks were closed. Tomorrow, the UK is to release the BRC Shop Price Index, while the US publishes the CB Consumer Confidence, HPI, and S&P/CS Composite-20 HPI data. Positive US data could help the greenback appreciate versus its rivals.

GBP/USD Bearish Pattern!

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As you can see on the H1 chart, the GBP/USD pair developed a flag pattern. As long as it stays below the downtrend line, the rate could drop deeper. The weekly pivot point of 1.2370 and the downtrend line represents major resistance levels.

On the other hand, the uptrend line and 1.2321 serve as downside targets and obstacles.

GBP/USD Outlook!

Dropping and closing below 1.2321 activates more declines. This is seen as a new selling opportunity.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2024
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