The GBP/USD is on a declining path, has resumed the bearish momentum after the yesterday’s minor rebound, the rate has reached fresh new lows today and is expected to drop much deeper as the USDX has edged higher and is very close to jump above the Tuesday’s high from 96.43 level, an increase above this level followed by a short consolidation will force the USD to increase further versus all its rivals. The USD continues to increase as the United States economic data have started to come better in the last days, the greenback is driven higher by fundamental factors.
The Cable edged lower even if the United Kingdom Services PMI has decreased less in the yesterday’s session, has decreased from 52.9 to 52.6 points, even if the estimate was 52.1 points, but the currency pair was demolished by the positive US data. The Pound has taken another hit today from the Housing Equity Withdrawal indicator, which has come much worse than expected, has fallen from -5.1B to -12.6B and has reached the lowest level of the last 5-months, has come in much worse than the -5.4B estimate.
The US dollar edges higher right now because the United States Unemployment Claims has come better, the Initial Claims have dropped again, even if the economists have expected to see an increase. The Jobless Claims have fallen from 254K to 249K jobs in the previous week and have reached the lowest level after April 21, 2016, the greenback was lifted by this good data.
The US Challenger Job Cuts indicator has decreased by 24.7% in September, has dropped more versus the 21.8 drop from August, this is a good news for the US dollar, which is expected to resume the upside momentum.

GBPUSDd

The price has plunged again today and is moving toward fresh new lows, has fallen below the 1.2640 level as the USDX has managed to reach new highs in the last hour. You can see that the price has broken below the second warning line (wl2) of the previous ascending pitchfork, signaling that the bears are in full control, the major downside target remains at the lower median line (LML) of the descending pitchfork, where we could find support again, the pair is attracted by the LML after the failure the close above the median line (ML) of the descending pitchfork. The price is strongly bearish again because has failed to test and retest the 1.2795 level (registered after the Brexit referendum).

GBPUSDh

The price has dropped more than 100 pips in the last three hours and could drop even lower till the end of the day because has ignored the second warning line (wl2), you can notice that the price has tested and retested this downside obstacle, but the price is too heavy to be stopped on the short term, most likely will fall below the 1.2600 psychological level if the USDX will make new highs in the coming days.

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