As already expected, the GBP/USD exchange rate was unable to breach the 200-hour SMA and the weekly PP at 1.3232 on Wednesday. This resulted in a strong bearish momentum which has pushed the rate as low as the psychological 1.31 mark by early Thursday. This level is located near the monthly S1 and a two-month channel near 1.3070.
This half-day surge has pushed technical indicators on both the 1H and 4H time-frames into the oversold territory. It is likely to trigger bulls to re-open their positions which would in turn result in appreciation. There is no resistance limiting the Pound until the aforementioned 1.3232 level. Further surge is unlikely.
In case of strong US Final GDP data at 1230GMT, a subsequent fall should not exceed the eight-month low and the weekly S2 at 1.3020.
