The GBP/USD pair remains under massive pressure as the DXY remains bullish. The price registered an important leg higher in the short term. Now, it has found resistance and now it has turned to the downside.
The greenback is still strong ahead of the US NFP. Today, the ADP Non-Farm Employment Change was reported better than expected at 568K above 425K expected and compared to 340K in the previous reporting period.
GBP/USD Technical Analysis!
GBP/USD found resistance at the first warning line (wl1) of a major descending pitchfork. The 1.3602 – 1.3571 area represented a major support zone. The support area turned into a resistance zone. It’s failure to stay above this area signaled strong pressure.
Making a new lower low, stabilizing under the 38.2% retracement level may activate a deeper drop. The downside scenario could be invalidated by a valid breakout through the warning line (wl1).
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