The GBP/USD pair has decreased significantly after the Brexit referendum, the price has reached fresh new lows, but looks like is loosing bearish momentum, the rate has found temporary support and now is struggling to rebound on the short term. The price has increased today, but remains to see how the price will react after the United States economic data will be released, the fundamental events could bring some action on this pair in the US trading session, any disappointment could punish the greenback, the USD could drop further versus its rivals on the short term.
The Cable has increased because the UK’s Manufacturing Production has dropped less compared to the 1.2% estimate, has fallen only by 0.5% and has reached the lowest level of the last 3-months, moreover the Halifax HPI has increased by 1.3%, exceeding the 0.4% estimate, has increased much more compared to the 0.9% growth in the previous reading period. Meanwhile the Industrial Production has fallen by 0.5% in May, but less than the 1.0% forecast, has decreased again after 2-month increase, the Pound has increased a little today, could jump much higher if the US data will come worse today.
The US is to release high impact economic data, the ADP Non-Farm Employment Change could reach the 158K level, the US could add less jobs in June compared to the 173k in May, the economic indicator could remain much below the 200K and could harm the greenback, moreover the Jobless Claims could increase from 268K to 269K jobs in the last week, we’ll have to be patient to see how the USD will react after the, the Energy Information Administration will publish the Crude Oil Inventories later this afternoon, but I don’t think that this indicator will have any impact on the GBP/USD pair, another decrease of Crude Levels will help the Oil to recover a little after the last drop.

You can see on the Daily chart that the rate has found support right above the lower median line (LML) of the medium term descending pitchfork and now is fighting hard to rebound, the pair could start a corrective phase after the massive drop registered after the Brexit referendum. The GBP/USD could increase on the short term if the rate will stay above the lower median line (LML) of the descending pitchfork, you can see that the price has decreased below the dynamic support, but wasn’t able to close below this obstacle, now we’ll have to wait for a confirmation, we need a consolidation here to be certain that the sentiment will change on the short term.

I’ve drawn a minor ascending pitchfork, personally I’m expecting to see a retest of the lower median line (LML) of the Daily descending pitchfork, but also the lower median line (lml) of the minor ascending pitchfork, we have a very strong confluence area at the intersection of the mentioned dynamic support levels, we’ll have a very good opportunity to go long on this pair if the price will retest the confluence area and will stay above this zone.

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