GBP/USD dropped below 1.37 psychological and under the uptrend line confirming a larger correction ahead. USDX’s further growth boosted the greenback which it has increased versus its rivals and not only against the Pound.

The pair drops despite better than expected UK Flash Manufacturing PMI and Flash Services PMI data and some poor US figures reported yesterday. UK’s manufacturing and services sectors resumed expansion.

On the other hand, the US Flash Services PMI increased from 59.8 to 60.0 points failing to reach 60.1 expectations, while the Flash Manufacturing PMI jumped from 58.6 to 59.0, below 59.6 expected. Surprisingly or not, the USD remains strongly bullish even if the Durable Goods Orders dropped by 1.1% versus 0.7% growth expected, furthermore, the Core Durable Goods Orders registered a 0.9% drop, the specialists expected a 0.6% increase.

GBP/USD Bearish Reversal!

analytics605c40c84d29e.jpg

GBP/USD dropped under the major uptrend line after registering a breakdown from a minor range. It has retested the broken uptrend line signaling a further drop. It’s traded at 1.3672 under the S2 (1.3697) broken static support indicating a sell-off.

The bearish bias remains intact as long as it stays under the black downtrend line. The major descending pitchfork’s median line (ML) could attract the price after the breakdown below the 50% Fibonacci line.

Forecast & Tips!

Closing below 1.3673 is seen as a selling opportunity. The S3 (1.3585) represents the next downside target. The short-term major target stands at the median line (ML).

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

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.