GBP/USD rebounded in the last days and now approaches two very important and strong resistance lines. It remains to see what will happen when the rate will reach the near-term obstacles because technically, the perspective remains bearish.

USD drops versus the Pound as the USDX has plunged in the last days. Technically, the dollar index could drop much deeper in the upcoming days and could try to recapture bullish energy before will jump higher again. So, a further USDX’s drop will send the GBP/USD higher in the upcoming days.

USDX slipped below the upside 50% Fibonacci line of the ascending pitchfork after the failure to approach and reach the upper median lines (UML, uml). A retest or a false breakout above the 50% Fibonacci line will definitively send the rate towards the median line (ml) of the minor ascending pitchfork.

However, a failure to reach and retest the median line (ml) could send the USDX higher again and will force the USD to increase as well.  Unfortunately, the index failed once again to reach and retest the UML of the major descending pitchfork. However, this could be only a temporary drop and it could try once again to approach and reach the UML.

GBP/USD approaches the downside 50% Fibonacci line of the minor descending pitchfork, which represents a very strong dynamic resistance. We have another strong resistance at the LML of the major descending pitchfork. A rejection or a false breakout above the near-term resistance levels will send the rate down again.

It has jumped above the 61.8% retracement level, but it remains to see if it will have enough energy to stabilize above this resistance.

Personally, I believe that we’ll have a broader upside movement only if the rate will decrease a little again and if it will fail to reach or to close below the 1.26617former low and if it will make a valid breakout above the LML.