29.04.202217:20 Forex Analysis & Reviews: GBP/USD: larger rebound?

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The GBP/USD pair rebounded as USD was punished by the Dollar Index's correction. Still, the throwback could be only a temporary one. After its strong sell-off, the price was expected to rebound and recover.

GBP/USD reached a near-term resistance level, it remains to see how it will react as the US reported mixed data today. The Core PCE Price Index rose by 0.3% matching expectations, the Employment Cost Index surged by 1.4% beating 1.1% estimates, while Personal Spending and Personal Income came in better than expected. Unfortunately for the USD, Chicago PMI dropped from 62.9 to 56.4 points, while the revised UoM Consumer Sentiment was reported at 65.2 points below 65.8 expected.

GBP/USD Lifted By DXY Drop!

As you can see on the H1 chart, GBP/USD is challenging the 23.6% (1.2572) static resistance. Making a valid breakout above it may signal potential further growth. Registering only false breakouts may signal a new sell-off.

After its failure to stabilize below the lower median line (lml) or to reach the 1.2400 psychological level, the GBP/USD signaled that the sellers are exhausted.

GBP/USD Forecast!

A bullish closure above 1.2585 today's high could confirm further growth and could bring buying opportunities with the first potential target at weekly S2 (1.2648).

A new lower low, a bearish closure below 1.2530 could activate a sell-off.

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