The GBP/USD edges higher on the short term and is very close to reach a major upside target if the greenback will remain sluggish. Is strongly bullish these days as the USDX plunges aggressively and seems unstoppable right now, is approaching the 95.50 psychological level, but I don’t believe that will find support here.
Price maintains a bullish perspective on the short term, is trading within an ascending channel, but remains to see how will react when will hit a major dynamic resistance. Has closed today also a former gap down, signalling that the bulls are in full control on the short term and could lead the rate much higher.
Continues to move somehow sideways on the Daily chart, but is somehow expected to increase further as the behavior changed as the rate has started to make higher lows in the last months, but the sentiment remains unchanged as long as is trading somewhere below the 1.3120 level.

USDXdaily-1

I've added the USDX's Daily chart to show you better why the USD is trading in the red versus all its rivals, you can notice that has dropped sharply after the false breakout above the 97.56 static resistance and above the 150% Fibonacci line (ascending dotted line). Actually, we had a false breakout also above the median line (ml) of the minor descending pitchfork, so the current drop is natural and understandable. Could be attracted by the first warning line (WL1) of the major ascending pitchfork and by the lower median line (lml) of the descending pitchfork, we have a confluence between these levels, but I don't believe that will drop so sharply to reach the mentioned confluence area. A further drop will punish the greenback, which has taken a hit from the Unemployment Claims report today, the Initial Claims increased from 242K to 244K in the previous week, beating the 241K estimate, while the Final GDP Price Index increased by 1.9%, less versus the 2.2% estimate. The USD received support only from the Final GDP indicator, which increased by 1.4%, more versus the 1.2% estimate, but wasn't enough to save the currency from downside. The Pound rallies on the mixed UK's data, the Net Lending to Individuals increased from 4.2B to 5.3B, beating the 4.0B estimate, while the Mortgage Approvals remain at 65K for the second month in May, moreover the M4 Money Supply dropped by 0.1%, even if the traders have expected to see a 1.3% growth.

GBPUSDdaily-2

Price touched the 50% Fibonacci line (ascending dotted line), but the major target remains at the upper median line (UML) of the major descending pitchfork. Remains to see how will react in the upcoming days, a valid breakout will change the sentiment and will bring us a good buying opportunity, while a rejection will send the rate down again and will have a great selling opportunity. Right now will be better to stay away because we don't have a trading opportunity.

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