The currency pair dropped aggressively in the yesterday’s trading session and closed the week below some crucial support levels. The USD has taken full control on the short term after the USDX’s rally.

The dollar index has managed to reach the 92.00 psychological level, but failed to stay there and now is back at the 91.51 level. The index plunged aggressively in the US trading session after the retest of a very strong dynamic resistance.

The USDX could come back down to test and retest a very strong dynamic support (resistance turned into support). Technically, a further increase expected, so the USD could resume the upside movement after the after a minor retreat.

The Pound dropped aggressively versus all its rivals also because the UK’s data have disappointed, the Gfk Consumer Confidence dropped further, from -7 to -9 points, even if the specialists have expected to see the indicator steady at -7 points. The Nationwide HPI rose by 0.2%, matching expectations, while the Index of Services increased only by 0.4%, less versus the 0.6% estimate and versus the 0.6% growth in the former reading period.

The Pound has taken a hit from the Prelim GDP, which it has increased only by 0.1%, less compared to the 0.3% estimate and versus the 0.4% growth in the former reading period.

The rate has plunged below the median line (ML) of the minor descending pitchfork and below the 350% Fibonacci line of the former descending pitchfork and has stopped right below the third warning line (WL3) of the ascending pitchfork.

I’ve said in the former analysis that it a valid breakdown below the median line (ml) if will confirm a further drop. However, the rate could come back to test and retest the median line (ml) of the descending pitchfork before will drop further towards the lower median line (lml).

The rate needs to make a valid breakdown from the extended sideways movement to be sure that will really move towards fresh new lows.