The GBP/USD has started another bearish movement on the short term, the pair has ended the minor rebound and now is targeting new lows, the rate remains under selling pressure. The rate has decreased significantly today, has erased yesterday’s gains and now is approaching the Friday’s low, is expected to drop much deeper in the coming days, the United States economic data could boost the greenback if will come in line with expectations or better.
The Cable edges lower even if the UK’s inflation data have come better today, the Consumer Price index has increased by 0.5% in June, exceeding the 0.4% estimate, the CPI has increased more compared to the 0.3% growth from July. Meanwhile the Core CPI has surged by 1.4%, more than the 0.3% prediction, the indicator continues to increase, has reached the highest level of the last 3-months, but the Cable remains sluggish versus all its counterparts.
The PPI Input has increased by 1.8%, much more compared to the 0.9% forecast, while the PPI Output has increased by 0.2%, actually has remained steady for the second month in June. Moreover the RPI indicator has jumped higher by 1.6%, the House Price Index has remained steady at 8.1%, even if the traders have expected to see only a 7.8% growth.
Remains to see how the GBP/USD will react after the United States will release he Building Permits figures, the economic indicator is expected to increase from 1.14M to 1.15M, the greenback could receive a helping hand if the data will come better today, the Housing Starts may increase from 1.16M to 1.17M, the USD could increase further as the Us dollar index has managed to jump much above the 96.70 static resistance.

The rate has found resistance right below the sliding parallel line and now is doing down again on the short term, the next downside target is at the lower median line of the mini ascending pitchfork, the major target is at the previous low 1.2796 level, could approach again the lower median line (LML) of the medium term descending pitchfork because has failed to retest the median line (ML) again, the pair remains under selling pressure, we’ll see what will happen in the coming week when the Federal Reserve will publish the Federal Funds Rate, most likely the FED will maintain rate on hold and will delay once again to hike the rate.

You can see that I’ve added another minor descending pitchfork to show you better the price movement, the rate has fallen again below the minor median line of the descending pitchfork and could approach the confluence area formed at the intersection of the lower median line of the short ascending pitchfork with the lower median line of the minor descending pitchfork, more likely the rate will be attracted by this confluence. The pair is expected to fall further because you can see that has retested the median line (ml) of the ascending pitchfork, but was unable to close above this obstacle.

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