The GBP/USD has decreased today, even if the United Kingdom data have come in better, the greenback has increased a little today as the USDX has rallied and has managed to climb above the 100.73 previous high and has reached the 101.03 level. The greenback has lost ground versus its counterparts in the last hours as the USDX has slipped lower after the impressive rally. The green back could dominate the currency market again if the USDX will have enough energy to resume the minor rebound, an increase much above the 101.00 psychological level will force the USD to appreciate versus its rivals.
The GBP/USD continues to move sideways on the Daily chart, has failed to reach the upside line of the range movement and now could drop again.

The Pound has dropped even if the UK’s data have beaten the expectations, the Manufacturing Production surged by 2.1% in December, beating the 0.3% forecast, the indicator has increased sharply after the 1.4% growth in November, the Industrial Production rose by 1.1%, even if the specialists have expected to see a 0.2% decrease, the production has increased further after the impressive growth (2.0%) in the previous reporting period. The Goods Trade Balance has come in better than expected, has increased from -11.6B to -10.9B, beating the -11.5B estimate, the Construction Output has increased as well by 1.8%, exceeding the 1.1% estimate, you can see that the data have come in better, but the Pound wasn’t impressed.
On the other hand, the greenback has lost ground in the last hours as the United States economic data have disappointed, the United States Prelim UoM Consumer Sentiment decreased from 98.5 to 95.7 points in February, much below the 97.9 estimate, reaching the lowest level of the last 3-months, the Prelim UoM Inflation Expectations surged by 2.8%. The United States Import Prices rose by 0.4%, matching expectations, the US will release also the Federal Budget Balance, remains to see how the price will react after this release.

GBPUSDdaily-1

You can see that the price continues to move sideways on the Daily chart, is trapped between the 1.2795 static resistance and the 1.2082 horizontal support, we'll have a clear direction only if the price will escape from this range. The GBP/USD could drop after the failure to stabilize above the median line (ml) of the minor ascending pitchfork, has shown exhaustion signs, has retested the median line (ml) and now is somehow expected to move down, but this scenario will take shape only if the USDX will have enough energy to resume the upside momentum, otherwise the rate will try again to reach the median line (ML) of the major descending pitchfork. Could move sideways in the coming days, after the false breakout below the 50% Fibonacci line (descending dotted line), right now is will be better to stay away from this pair because we don't have any trading opportunity.

GBPUSDh4-1

I've drawn a minor descending pitchfork on the H4 chart, could drop further as long as is trapped inside the pitchfork's body, but a breakout above the upper median line (uml) followed by a retest will attract more buyers.

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