GBP/USD drop could point towards the next leg lower
GBP/USD fell below the $1.2794 support level yesterday, raising the chances of further downside for the pair.
The recent rebound always looked like a retracement, yet the size of that rebound is always going to be difficult to anticipate. However, with the failure to create higher lows, we have seen a potential answer to that question. With that in mind, the rally we are seeing this morning is likely to be a retracement of yesterday’s sell-off. Thus, unless we break above the $1.2883 mark, another turn lower looks likely before long.