The pair has already shown a good amount of volatility this week and heading towards 1.20 area. GBP had a great fall today against USD after the Helifax HPI report showed negative figure of -0.9% which was expected to be 0.2%. At the starting of the week, USD had advantage over GBP as the price was below the psychological level of 1.2550. The Pound is still under pressure due to the Brexit. Currently GBP has reached 1.24 area and is said to fall much lower soon before the Manufacturing production report coming up on Friday.
Now let us look at the technical view, after a price hike towards 1.27 GBP had sudden drop below the support level 1.2420. Currently, the price has broken below 1.2420 area and the medium-term market bias has changed to bearish. Now the market is retracing towards 1.2420 area with some intraday bullish price action and it is expected that after a retest towards 1.2420, if we can encounter any bullish rejection, we will be looking forward to sell with a target towards 1.20 level as the next support level.
