GBP/USD under pressure after pattern breakout

The GBP/USD broke its short term uptrend in Monday's trading.

Charts (2)

The US Dollar was bullish against most of its major pairs on Monday with the exception of the EUR.  

On the economic data front, the Monthly Federal Budget Deficit increased to 864.1 billion dollars on month in June (863.0 billion dollars expected), from 8.5 billion dollars in May, marking a record. 

On Tuesday, the National Federation of Independent Business' Small Business Optimism Index for June is anticipated to increase to 97.8 on month, from 94.4 in May. Finally, the Consumer Price Index for June is expected to rise 0.5% on month, from -0.1% in May.    

The Euro was bullish against all of its major pairs. In Europe, no major economic data was released. 

The Australian dollar was mixed against all of its major pairs.

Looking at the biggest loser in Monday's trading, the GBP/USD dropped 70 pips to 1.2552. The currency pair broke below a triangle top pattern formation. As long as the pair can remain below 1.262 resistance, look for a continuation lower towards 1.2165 support. 

Source: GAIN Capital, TradingView

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