Sterling remains in a downtrend

Sterling remains in a downtrend
Despite oversold conditions, the GBPUSD pair remains in a steep downtrend, failing to bounce significantly. The Pound was 0.2% weaker against the greenback, changing hands near 1.3230, one-year lows for the pair ahead of the US session.
Earlier today, the Confederation of British Industry cut its UK economic growth forecasts for this year and next, as global supply issues weighed heavily. 

The business organization now forecasts 6.9% GDP growth for this year and 5.1% in 2022, compared to its previous forecast for 8.2% and 6.1%, respectively.

"Significant headwinds and rising costs of living threaten the extent of recovery and prospects for economic success," said Tom Danker, CBI director-general.

The hourly chart shows a perfect symmetrical triangle formation, with sterling testing its upper band today and failing drastically. The sell-off brought the pair to the lower line of the pattern, currently near 1.3225.

If that support is taken out, we could see a quick decline toward last week's lows of 1.3190. Below that, the medium-term target for bears would likely be at 1.30.

Alternatively, if the USD weakens, the pair needs to rise above the bearish trend line, currently near 1.3265. After that, a close above 1.32 will be required to cancel the immediate bearish momentum.
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