GBP/USD Price Finds Respite at 1.3050 amid Upbeat UK Data

• The GBP/USD pair rebounded amid better-than-expected UK data.
• The currency pair maintains a bearish bias as long as it stays under the median line (ML).
• A new lower low may confirm a downside continuation.

The GBP/USD price is trading in the green around 1.3090 on the 4-hour chart. The currency pair started to rise again as the British Pound was boosted by the upbeat UK economic data.

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Still, from the technical point of view, the bias remains bearish. The pair could drop deeper anytime again. In the short term, we cannot exclude a temporary rebound. However, the price could retest the immediate upside obstacles before dropping deeper. The GBP/USD pair plunged after the US inflation data was released in yesterday’s session. DXY’s strong rally forced the USD to appreciate versus its rivals.

As you already know, the US reported higher inflation in February. As a result, the greenback appreciated as the Federal Reserve is expected to hike rates in the March monetary policy meeting.

Fundamentally, the GDP lifted the Pound, which reported a 0.8% growth versus 0.1% expected. Industrial Production rose by 0.7%, beating the 0.1% estimates while Manufacturing Production registered a 0.8% growth in January versus 0.2% forecasts. In addition, the Index of Services rose by 1.0% versus 0.8% expected, while the Construction Output reported a 1.1% growth exceeding the 0.5% growth forecasted.

GBP/USD Price Technical Analysis: Bearish Bias

The GBP/USD pair registered a sharp drop after retesting the descending pitchfork’s median line (ML) and the 1.3194 static resistance. In the short term, the price action developed a minor up channel representing a bearish pattern. Finally, the rate dropped as low as1.3050 level where it has found strong support.

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The pair is around 1.3090 and is fighting hard to rebound and recover after its massive drop. Despite a temporary rebound, the bias remains bearish as long as the GBP/USD pair is below the descending pitchfork’s median line (ML). A minor growth could help the sellers to catch new short opportunities. However, coming back to retest the median line (ML) could precede a new bearish momentum. Also, a new lower low, dropping and closing below the 1.3050 today’s low, may activate more declines.

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