GBP/USD Forecast: bearish, 1.2880 possible
|The GBP/USD pair trades near a daily low set at 1.2936, having enjoyed some short-lived demand after the release of an upward revision of the Q2 GDP, up to 0.7% from previous estimates of 0.6%, although the current account deficit widened to £-28.684B, but below the £-30.50B expected. The news sent the pair up to 1.2991, but it was quickly rejected for the level, on broad dollar's demand.
The US will release its August Personal Consumption and Expenditure figures later today, expected to have grew less than during July, and if the readings result even worse than expected, the greenback may suffer a setback.
In the meantime, the technical picture for the GBP/USD pair favors the downside, as in the 4 hours chart, the recovery faltered around the 20 SMA, while the RSI indicator keeps heading lower within bearish territory, around 39. In the same chart, the Momentum indicator has turned higher within negative territory, indicating limited downward strength at the time being. Nevertheless, a break below the mentioned daily low should fuel the decline towards the 1.2880/1.2900 region.
Above 1.3000, on the other hand, the pair can recover some ground, although selling interest will probably surge around 1.3040/50.
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