FX.co ★ GBP/US Hot Forecast for 27 July

• A modest USD pullback assisted GBP/USD to attract some dip-buying on Tuesday.
• Disappointing US Durable Goods Orders data did little to impress the USD bulls.
• A declining trend in Delta variant cases in the UK acted as a tailwind for the sterling.

The GBP/USD pair managed to recover over 50 pips from the daily swing lows and climbed to the top end of its intraday trading range during the early North American session. The pair held steady around the 1.3815-20 region and had a rather muted reaction to the US macro data.

The US dollar struggled to preserve its intraday gains amid a sharp intraday decline in the US Treasury bond yields. Apart from this, a modest bounce in the US equity futures further undermined the safe-haven greenback, which, in turn, was seen as a key factor that assisted the GBP/USD pair to attract some dip-buying on Tuesday.

The price is currently battling the surface of a descending channel and the 38.2% Fibonacci retracement of the latest downfall at 1.3829. Should efforts prove fruitful, the door would open for the 50% Fibonacci of 1.3900, while within breathing distance, the 1.3950 may cancel any corrections towards the 61.8% Fibonacci of 1.4032.

Failure to bounce above the trendline and the 1.3829 barrier could see another test near the 23.6% Fibonacci of 1.3730 . Breaching this floor, the bears could take a rest near the 1.3668 support region before gearing down to meet the 1.3570 low. Beneath the latter, the channel's bottom line could be the next pivot point around 1.3500.