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The British pound traded lower recently against the US dollar, and almost tested the last low of 1.5380. There was a lot of bearish pressure noted on the GBPUSD pair, which ignited sharp downside reaction in the near term. There are a couple of releases lined up in the UK today, including the Nationwide Housing Prices, which represents the value of the houses prices in UK and indicate current movements in the housing market. The forecast is of a 6.1% increase in prices in February. Let us see how the outcome shapes up. Moreover, the US ISM manufacturing PMI will also be released today, which could cause swing moves in GBPUSD.
There is a bearish trend line formed on the hourly chart of the GBPUSD pair, which might act as a catalyst for the pair in the near term. There are a couple of important negative signals to note from the chart, which includes the fact that the pair is trading well below the 200 and 100 hour moving averages. If the pair continues correction from the current levels, and moves towards the highlighted trend line, then the 23.6% fib retracement level of the last leg from the 1.5551 high to 1.5383 low is also sitting around the same trend line. The hourly RSI is well below the 50 level, which means that sellers are here to stay in the near term.
On the downside, the last low of 1.5380 might provide support to the GBPUSD pair. Any further losses could take it towards the 1.5350 level.
Overall, one might consider selling rallies around the highlighted trend line as long as it is trading below the 200 hourly MA.