From Original Source FxDailyReport.com : GBP/USD found temporary support August 29, 2016
The GBP/USD has decreased today and has reached fresh new lows, but has squeezed again in the previous hours, has found temporary support on the short term. Surprisingly or not, the rate has decreased even if the United States economic data has come in line with expectations, the rate has decreased also because the USDX has decreased after the morning increase, the index is located below an important resistance level, has jumped above this upside obstacle, but has retreated again in the last hours, however the perspective remains bullish on the short term, the index could jump much higher in the coming days even if we’ll have a short decrease right now.
The US data have met the expectations, but have failed to lift the US dollar, the Core PCE Price Index has increased by 0.1% in July, has remained steady at 0.1% growth for the second month, while the Personal Spending has increased by 0.3% in July, less compared to the 0.5% in June, moreover the Personal Income rose by 0.4%, matching expectations, the greenback looks exhausted on the short term after the Friday’s massive increase.
The rate continues to move sideways on the short term, is trading at the half of this consolidation phase, has found resistance again at the sliding parallel line (descending dotted line), right now is challenging the lower median line (lml) of the short ascending pitchfork any drop below this level will open the door for more declines on the short term. Will be better if we’ll wait for a fresh new signal, we’ll have a clear direction only once the rate will escape from the range movement, you can see that I’ve drawn symmetrical triangle, the rate has failed to retest the resistance and now could drop to reach again the support of this chart pattern. Personally, I’ll wait for a breakout from the chart pattern, remains to see the direction, the rate is somehow expected to resume the downward movement because the traders are still optimistic that the FED will raise the rate in the coming period,while the BOE could add more stimulus measures.