GBP/USD dropped in the last hours and seems determined to stat a larger drop in the upcoming period as the USDX could increase after the minor drop. The currency pair has slipped below a dynamic support and now has tried to retest the broken level, but the bears could take full control sooner than expected.

We still need a confirmation that the rate will drop aggressively in the upcoming period. Technically, it should drop further in the upcoming period, but only if the dollar index will have enough energy to rebound and to take out the 93.81 static resistance.

The Pound increased a little today, but failed to stay higher even if the United Kingdom data have come in mixed. The Current Account was reported at -22.8B in the third quarter, much below the -21.5B estimate, while the Final GDP rose by 0.4%, matching expectations and the 0.4% growth in the former reading period. Moreover, the Index of Services surged by 0.3%, has come in line with expectations, while the Revised Business investment increased by 0.5%, more versus the 0.2% estimate and compared to the 0.2% estimate.

On the other hand, the greenback increased a little even if the United States data have come in mixed today.

The rate has tried to retest the second warning line (wl2) of the ascending pitchfork and the upper median line (uml) of the minor descending pitchfork. A failure to retest the mentioned levels will signal a larger drop in the upcoming days.

However, only a breakdown below the 1.3300 former low will really confirm a further drop. Price it could be attracted by the median line (ml) of the minor descending pitchfork. We have an important downside target at the lower median line (lml) of the minor descending pitchfork as well.

Price has show exhaustion signs in the last week, has failed to reach the 1.3656 previous high, so a corrective phase is expected.