The GBP/USD has plunged aggressively today and has registered new lows, has decreased sharply because the Cable was punished by the dreadful economic data, the United Kingdom economic figures have come much worse compared to the economists forecasts, however the USD was pushed higher by the USDX’s impressive rally, the index has managed to climb above the Friday’s high, the index has broken above an important dynamic resistance, signaling that could become strongly bullish again and could force the USD to appreciate versus all its counterparts. We’ll see what will happen on the GBP/USD in the coming days, because personally I’m waiting for a confirmation before I’ll take a decision, the rate has decreased, but maintains a bullish perspective on the short term, this retreat was somehow expected after the false breakout.
The UK figures produced a big surprise today, the Consumer Price Index has increased only by 0.6% in August, less compared to the 0.7% estimate, actually has remained steady at 0.6% for the second month in August, but unfortunately has disappointed the Cable’s bulls. Moreover the Core CPI has increased by 1.3%, has failed to reach the 1.4% estimate and have weakened the Pound, while the PPI Input rose by 0.2% estimate, less compared to the 0.6% forecast, the PPI Output has increased only by 0.1%, has come much below the 0.3% prediction.
The HPI has increased by 8.3%, less than the 8.5% estimate, has disappointed because has come in much below the 9.7% growth from the last reading period, while the RPI has increased by 1.8% matching expectations, but want able to save the Pound from downside.

The rate has decreased sharply and has fallen again below the lower median line of the ascending pitchfork, looks like that has found support at the descending sliding line, we’ll see if this dynamic support will be strong enough to stop the bearish momentum. The price has dropped after the yesterday’s rebound, unfortunately the price has failed to stay above the lower median line (lml) and has failed to reach again the median line (ML) of the medium term descending pitchfork. The GBP/USD could slip even lower to test the confluence area formed by the sliding line (descending dotted line) with the 150% Fibonacci line, only a drop below this confluence area will signal a larger decrease, otherwise the rate could bounce back from the mentioned confluence area. The price could climb back inside the ascending pitchfork’s body if the 150% Fibonacci line will hold.

I’ve added a short descending pitchfork on the H4 chart to understand better the price action, the rate has failed to retest the upper median line (uml) of the minor descending pitchfork, signaling that the bears are in full control, the rate is expected to approach the median line (ml) of the descending pitchfork, however, could retest the upper median line (uml) before will resume the bearish momentum, personally I’m expecting to see the rate below the 1.3000 in the coming period because the UK could add more stimulus measures.

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