The GBP/USD is trading in the red right now, but maintains a bullish perspective on the daily chart. Is moving sideways, but remains to see if this will be an accumulation or a distribution movement. The perspective remains bullish on the daily chart despite a minor decrease. A minor retreat could give us the chance to go long again on the short term.

Price dropped today, even if the USDX has slipped lower  and has resumed the yesterday’s bearish candle. The USDX has squeezed a little in the last hours, but is still premature to talk about another leg higher as long as the rate is trapped below the 92.49 horizontal resistance.

Seems like that the behavior has changed on the short term, the index could develop an Inverse Head and Shoulders, but this pattern will be confirmed only after a valid breakout above the 92.49 static resistance.

The UK’s CBI Industrial Order Expectations dropped from 13 to 7 points, much below the 13 point estimate. The United States Flash Manufacturing PMI increased from 52.8 to 53.0 points, beating the 52.9 estimate, while the Flash Services PMI dropped from 56.0 to 55.1 points, has come in much below the 55.8 estimate.

Price dropped after the yesterday’s increase, but remains to see if the bears will have enough energy to drag it down. A false breakdown below the 150% Fibonacci line (ascending dotted line) will signal another momentum towards the next upside target from the lower median line (lml) of the ascending pitchfork.

Is challenging the 1.3527 static resistance, will increase further if the USDX will slide further. Only a USDX’s rally will force the rate to drop again on the short term. Is also pressuring the 150% Fibonacci line (ascending dotted line) because we don’t have a  valid breakout yet.

Only a minor increase followed by a retest of the 150% line will confirm a further increase towards the lower median line (lml). A minor decrease will really come if the rate will close below the 1.3527 and if will retest it.