GBP/USD Faces Resistance and Turns Bearish: Targets 1.2070 Amid Weak UK Data
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GBP/USD
Yesterday, the British pound failed to overcome the resistance of the MACD indicator line (red arrow) and, turning away from it, closed the day with a loss of 62 points. Now the price is aiming for the lower line of the price channel around 1.2130. Overcoming the support opens the target level of 1.2070 – the average low of October 26, 2023 and May 18, 2020.
Today, the UK is expected to release weak data; GDP for the 3rd quarter may show a decrease of 0.1% (0.5% YoY against 0.6% YoY earlier), industrial output for September is expected to contract by 0.5%, industrial production for the same month is forecasted to decrease by 0.1%.
On the 4-hour chart, the price has overcome the support of the MACD line, and the Marlin oscillator is decreasing in the downtrend territory. The pair has a great potential to move down.
