The GBP/USD has rallied aggressively and has managed to jump above some important broken support levels, has increased significantly and if very close to reach the 1.2429 previous week high. The price has increased because the pair was driven by the fundamental factors, the impressive increase has invalidated the yesterday’s breakdown.

The price has closed to yesterday’s gap down and looks determined to hit new highs in the coming days, the dollar was weakened by the USDX’s  massive drop, while the United Kingdom has released high impact data, most of the figures have come in better than expected.

The Cable has rallied after the UK PM Theresa May sustained that the both houses of Parliament will vote on the Brexit deal. Moreover the CPI rose by 1.6% in December, exceeding the 1.4% estimate, has increased much compared to the 1.2% growth from November, while the Core CPI surged by 1.6%, more versus the 1.4% prediction. The RPI and the HPI indicators have increased by 2.5%, respectively, by 6.7%, beating the estimates.

The PPI Input and the PPI Output have disappointed a little because have failed to meet the economist’s predictions.

The rate has increased and is very close to hit the 50% Fibonacci line (descending dotted line), which represents a strong dynamic resistance, has rallied and has climbed again inside the extended sideways movement and much above the major confluence area formed by the lower median line (LML) of the major descending pitchfork with the 1.2089 static support.

We had a false breakout in the yesterday’s trading session, the pair will resume the range movement because is trapped between the 1.2798 and the 1.2089 levels. Could approach the median line (ML) of the major descending pitchfork if will have enough directional energy to ignore the dynamic resistance from the 50% Fibonacci line (descending dotted line). The medium term perspective remains bearish as long as the rate is trading inside the major descending pitchfork’s body, but the short term behavior could change as the price has started to make higher lows.