The GBP/USD pair is trading in the red at 1.2652 at the time of writing and it seems very heavy as the DXY could come back higher. After the last drop, a rebound was natural. Later, the US Unemployment Claims, Core PCE Price Index, Chicago PMI, Pending Home Sales, Personal Income, and Personal Spending should really shake the price. Positive US data should push the currency pair towards new lows.
Technically, the rate came back to retest the broken uptrend line, developing a minor flag pattern, which signaled a new sell-off. The false breakouts through 1.26736 followed by a valid breakdown below 1.2650 activates more declines.
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