GBP/USD is pressuring a dynamic resistance, so it remains to see what will happen in the upcoming days. The pair has started a rebound as the USD was punished by the USDX’s drop. You should know that the rate is trapped below some very important resistance levels. A USDX’s further drop will force the pair to increase further.

You should be very careful today because the price will be moved by the fundamental factors. The UK and the US are to release high impact data later.

The BOE is expected to keep the Official Bank Rate steady at 0.75% as the MPC Members will vote unanimously for this decision. As you already know, the interest rate was increased from 0.50% to 0.75% in August. The Asset Purchase Facility will remain unchanged at 435B as the MPC members are expected to vote unanimously for this decision.

The US data could shake the price, the CPI is expected to increase by 0.3%, more versus the 0.2% growth in the former reading period, while the Core CPI could increase by 0.2%. Moreover, the Unemployment Claims could increase from 203K to 210K.

GBP/USD is almost to reach the median line (ml) of the minor descending pitchfork and also the 50% retracement level. Unfortunately, it has failed to reach the confluence area formed at the intersection between the 50% level and the median line (ml).

A valid breakout above the LML, median line (ml) and the 50% level will signal a potential larger upside movement in the upcoming period. This scenario will take shape only if the USDX will drop further and will reach new lows.

You should be careful because this could still be a temporary rebound. Personally, I would like to see a valid berakout from the minor descending pitchfork before I’ll go long again.