The GBP/USD has decreased today and looks determined to drop much deeper on the short term after the failure to make new highs. The greenback has dragged the price down as the USDX has managed to resume the bullish movement today, the index has edged higher and has jumped above the 99.84 static resistance ahead of the United States data. Unfortunately the dollar index has slipped lower after the US figures were published even if the numbers have come in better.
The USDX maintains a bullish perspective on the short term despite a minor correction, could increase further after the impressive breakout above the 99.12 resistance (support has turned into resistance), personally I’m still waiting to see a Falling Wedge pattern on this index. Price maintains a bullish perspective on the short term despite a minor decrease, is somehow expected to increase further in the upcoming weeks.
The Cable dropped today also because the United Kingdom data have come in worse than expected, has disappointed and has punished the currency, which has also dropped versus the Euro and versus the Yen. The Manufacturing Production dropped by 0.6% in March, much more versus the 0.2% estimate, has fallen further after the 0.3% drop in the previous reporting period, meanwhile the Industrial Production has plunged by 0.5%, more versus the 0.4% estimate, the economic indicator continues to stay in the negative territory. Moreover the Construction Output decreased by 0.7% in March, even if the economists have expected to see a 0.3% growth, while the Goods Trade Balance dropped further, from -11.4B to -13.4B, has come in much worse versus the -11.7B estimate. The RICS House Price Balance increased by 22%, more versus the 20% estimate.
The Pound dropped even if the Bank of England has maintained the Official Bank Rate steady at 0.25%, the rate wasn’t changed since August 2016, while the Asset Purchase Facility remains on hold at 435B, matching expectations.
Surprisingly or not, the greenback has decreased a little in the last hours, even if the United States Unemployment Claims have dropped from 238K to 236K jobs in the previous week, the traders have expected to see an increase to 245K. The PPI rose by 0.5%, beating the 0.2% estimate and has managed to increase significantly after the 0.1% drop in the previous reporting period, while the Core PPI surged by 0.4%, more versus the 0.2% estimate.

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Price has dropped after the retest of the warning line (wl1) of the former ascending pitchfork and now is pressuring the 50% Fibonacci line (descending dotted line), could drop along this line till will reach the 1.2795 static support (resistance has turned into support). I want to remind you that the major upside target will be at the upper median line (UML) of the major descending pitchfork, we could have a great buying opportunity from the 1.2795 level, with a first target at the UML. Could come also to retest the median line (ml) of the minor ascending pitchfork before will increase further, could be attracted also by the upper median line (uml) of the ascending pitchfork if will stay above the median line (ml).

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