The rate is trading in the red and is expected to drop further in the upcoming period. Personally, I would have liked to see a retest of the broken support levels before will resume the corrective phase. The USD is very strong on the short term as the USDX has managed to rebound after the Friday’s drop and it could reach new highs in the upcoming hours.

GBP/USD is almost to escape from the extended sideways movement, so it could drop towards the 1.35 level.

USDX approaches the 92.00 psychological level, a valid breakout above this static resistance will confirm a further increase. I’ve said in the previous week that the index could decrease a little after the impressive rally before will jump much higher.

GBP/USD changed little today, but you should know that the UK and US data will bring life on this pair. The United Kingdom Manufacturing PMI may drop from 55.1 to 54.8 points signaling that the expansion has slowed down, the Net Lending to Individuals could decrease from 5.4B to 4.9B, while the Mortgage Approvals could drop from 64K to 63K. The M4 Money Supply could increase by 0.2% versus a 0.3% drop in the previous reporting period.

The US data could shake the price in the afternoon, some poor figures could force the GBP/USD to recover a little.

The rate stays below the third warning line (WL3) of the ascending pitchfork, below the 350% Fibonacci line and much below the median line (ml) of the black descending pitchfork. The next major downside target will be at the lower median line (lml) of the minor descending pitchfork. It could come back to test and retest the median line (ml) before will drop further.

Only an increase and a valid breakout above the median line (ml) will signal an important rebound, otherwise, the perspective will remain bearish.