The currency pair dropped significantly and resumed the yesterday’s bearish candle. Price has found strong resistance at the 1.4344 static resistance. The pound plunged versus all its rivals after the poor UK’s economic data.

The EUR/GBP further drop could be invalidated if the rate will close somewhere and will stay above the 0.8690 level. The rate jumped above the 0.8700 psychological level, but is hard to believe that will close the day above this level. The GBP/JPY dropped despite the Nikkei’s significant rally.

The GBP/USD even if the USDX has erased the today’s gains and now is pressuring a dynamic support. The perspective remains bullish despite the current drop. Only a drop somewhere below the 1.4074 static support.

The Pound was punished by the CPI, which increased only by 2.5% in March, less versus the 2.7% estimate and compared to the 2.7% growth in the former reading period, while the Core CPI rose by 2.3%, less compared to the 2.5% estimate and versus the 2.4% in the former reporting period.

The PPI Input dropped by 0.1%, even if the specialists have expected to see a 0.3% growth, the RPI increased by 3.3%, less versus the 3.5% estimate, the HPI surged by 4.4%, less versus the 4.8% forecast.

Price made a false breakout above the 1.4344 static resistance and now is pressuring the second warning line (wl2) of the former ascending pitchfork. The rate dropped from the 1.4344 static resistance and a valid breakdown below the wl2 will send the rate towards the sliding line (sl). Only a valid breakdown below the sliding line will confirm a further drop on the short term and could announce a reversal.

I’ve said in the previous article that the rate could find resistance at the 1.4344 static resistance and that only a valid breakout above this static obstacle will confirm a further increase.