Weak UK and strong US fundamentals on Tuesday resulted in a 108-pip fall of the GBP/USD exchange rate within six hours. As a result, the Pound fell down to the 1.2852 mark, but subsequently remained relatively stable slightly above 1.2860.
Strongly bearish technical indicators suggest that a rebound should occur in this session. The nearest resistance is the weekly S2 at 1.2887; this level, however, should be breached without any hindrance.
It is expected that the rate will trade in the 1.2900/40 area by Thursday morning if no surprising fundamentals or events shake the market tremendously. In case the Pound is pressured to the downside, losses should be limited circa 1.2840.
