GBP/USD has failed to make another higher and to confirm further growth, that's why the pair is under pressure now, this situation could bring us a short opportunity. The USDX's today's rebound has strengthened the dollar, which it has appreciated versus the major currencies.
The ISM Non-Manufacturing PMI amazing increase to 57.1 points could attract more and more buyers on USD in the short term. The US currency will grow significantly in the upcoming period if the USDX will have enough energy to jump and stabilize above the 98.00 level.
GBP/USD has failed to close and stabilize above the 61.8% retracement level and now is trading below the downside sliding line (sl1) of the orange ascending pitchfork. A valid breakdown below the sliding line (sl1) will suggest selling in the short term.
The pair is vulnerable also after the failure to stay above the median line (ml), this situation has suggested that the upside movement is finished and that we may have another leg down soon.
GBP/USD is back below the PP (1.2488) level and it could drop deeper if it stays below this upside obstacle and below the sliding line (sl1). Technically, the failure to come back above the median line (ml) of the orange pitchfork has signaled that we may have a drop towards the lower median line (lml).
A buying opportunity could appear only after a valid breakout above the median line (ml) and above the 61.8% level, or after GBP/USD will end the current bearish momentum.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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