The Pound is weak on the short term and could lose more ground versus its rivals. GBP/USD is trading in the red and could resume the bearish movement. Right now is approaching the 1.3000 psychological level, most likely will ignore this level and will decrease further.

Price goes down even if the dollar index failed to resume the Friday’s bounce back, the index is trading right above the 93.30 level. The USDX’s minor drop is natural after the failure to take out the 93.81 static resistance, has closed much below this level signaling that it could slip lower to retest a broken resistance.

I’ve added the USDX’s Daily chart to show you better what’s happening with the greenback. USDX has come down to retest the broken upper median line (uml) of the minor descending pitchfork. Could increase in the upcoming period if will stay outside the descending pitchfork’s body. Has found strong support at the 150% Fibonacci line (descending dotted line) and above the 92.49 long term static support, signaling a potential reversal.

The United Kingdom BRC Retail Sales Monitor indicator rose by 0.9% in July, less versus the 1.2% growth in the former reading period.

Price drops like a rock again, after the yesterday’s indecision and looks motivated to take out the dynamic support from the warning line (wl1). Technically is somehow expected to breakdown below the warning line (wl1), has finally retested again and most likely will cave in.

Support can be found at the upper median line (UML) of the major descending pitchfork, could approach this level after the failure to breakout from the ascending channel’s body and after the failure to reach the lower median line (lml) of the minor ascending pitchfork and the outside sliding line.

Looks like that the price has developed a Rising Wedge pattern, but is premature to say that this pattern will be confirmed. Will be very important to see how will react when will hit the upper median line (UML), maintains a bullish perspective as long as is located above this level.