The GBP/USD continues to move sideways on the short term and we’ll have to be patient till we’ll have a clear direction, the price has posted humble gains in the last days, has reached new highs today, but I’m not convinced that will have enough power to climb much higher because the USDX is still pressuring an important resistance level. The US dollar index is still fighting to take out the 95.57 static resistance, a jump above this obstacle followed by a minor consolidation will force the USD to increase significantly versus all its rivals.
The EUR/USD could drop again as the United States economic figures have come better, on the other hand, the United Kingdom figures have come in mixed and have failed to endorse the Pound. Surprisingly, the United States Final Gross Domestic Product rose by 1.4%, exceeding the 1.3% estimate, has come also above the 1.1% growth from the previous reading period. Moreover the Unemployment Claims has increased a little in the previous week, but was reported below the 260K estimate, has increased from 251K to 254K jobs, while the Final GDP Price Index has surged by 2.3%, matching expectations.
The US Goods Trade Balance has increased from -58.8B to -58.4B, has come much better compared to the -62.6B estimate, the indicator has reached the highest level of the last 4-months. The USDX has increased right after the data were sent to the public, we’ll see how will react after the Pending Home Sales will be released, the indicator may drop by 0.1%, versus the 1.3% growth from the last reading period. The FED Chair Yellen will speak later, but I don’t believe that will have any impact.
The United Kingdom Net Lending to Individuals has increased from 3.8B to 4.5B and has exceeded the 4.0B estimate, the M4 Money Supply rose by 0.9%, more than the 0.8% forecast, while the Mortgage Approvals have come in a 60K, matching expectations.

You can notice that the rate continues to sideways on the short term, has found support again at the up sloping red line, has increased a little to retest the first waning line (wl1) of the ascending pitchfork, a rejection here will push the rate down again. The price could drop if the US dollar index will have enough energy to make new highs, the rate maintains a bearish perspective as long as is trading below the median line (ML) of the descending pitchfork, the behavior has changed on the short term, when the rate has failed to reach and retest the lower median line (LML) of the medium term descending pitchfork, but I want to remind you that the sentiment will change only if the price will jump and will stabilize above the median line (ML).

The rate has found temporary resistance again, at the warning line (wl1) and now slips lower on the short term, could approach again the red uptrend line, we’ll see how will react when will touch this support again.

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