The GBP/USD has changed little today, even if the US dollar index has dropped much lower and has resumed the downside movement. Price has opened with a gap down today as the Cable was weaker today, the UK’s currency has dropped also versus the Euro and versus the Yen, so the minor drop versus the greenback is understandable.
Is somehow expected to climb much higher in the upcoming period because is trading above some important support levels (resistance has turned into support). Technically should jump much higher because could be attracted by a major dynamic resistance which is acting as a magnet and because the greenback could be weakened by a USDX’s further drop.
The dollar index has fallen and has reached fresh new lows today, has dropped much below the 97.00 psychological level, but has found temporary support at the 96.79 level, only a rebound will help the USD to drag the pair down on the short term.


You can see that the USDX has resumed the corrective phase and has touched new lows today, has erased the morning gains and looks determined to drop much deeper in the upcoming days. Remains to see what will happen because has found support right on the sliding line (descending dotted line) and now has squeezed a little. Is also pressuring the 150% Fibonacci line (ascending dotted line), which could represent a major support if will hold and if will reject the rate. A valid breakdown below the 150% Fibonacci line will open the door for more declines, we could have a rebound also of the rate will fail to close on the sliding line, we'll have a further drop if will close below the sliding line, the next major downside level will be at the lower median line (lml) of the descending pitchfork, while the major downside target will be at the first warning line (WL1) of the ascending pitchfork. We had a very poor economic calendar today, the Cable wasn't too impressed by the UK's Rightmove HPI indicator, which has increased by 1.2% in May, beating the 1.1% growth in April.


Has changed little, but maintains a bullish perspective on the short term as long as is trading above the 50% Fibonacci line (ascending dotted line), is still expected to approach and reach the upper median line (uml) of the minor ascending pitchfork and the upper median line (UML) of the major descending pitchfork. Could be attracted by the confluence area formed at the intersection between the upper median line (uml) of the minor ascending pitchfork with the UML. The sentiment will change drastically if the price will escape from the major descending pitchfork's body, but remains to see how will react when will hit the mentioned resistance levels, however a failure to reach the mentioned resistance levels will send the price lower again, the major downside target will be at the median line (ML) of the descending pitchfork.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.