The GBP/USD has increased today and has managed to delete the yesterday’s gains, should resume the upside movement after the minor consolidation. I’ve said in my yesterday’s article that we may have another rally soon as the pair maintains a bullish perspective.
Price has consolidated the latest gains and now looks motivated to increase further, the greenback is under immense selling pressure as the dollar index has fallen again below the 99.00 psychological level. The USDX is approaching the 98.50 level, looks very heavy and I’m not sure that will find a strong support near the mentioned level. A further USDX’s drop will send the dollar much lower versus its rivals. The dollar wasn’t impressed by the mixed US economic figures, is going down because has taken a hit from the CB Consumer Confidence, which has fallen more than expected.
The Pound has increased even if the Public Sector Net Borrowing increased from -0.7B to 4.4B in March, has come higher versus the 2.6B estimate. The dollar needs support from the United States economy, but we have a poor economic calendar tomorrow.
Price has increased and is located again above above the 1.2798 static resistance, this minor consolidation could continued till the rate will recapture more directional energy to be able to climb towards new upside obstacles. We’ll have a great buying opportunity if will test the confluence between the 1.2798 level with the lower median line (lml) of the ascending pitchfork.
Right now is hard to believe that will be attracted by the confluence area formed at the intersection between the median line (ml) of the ascending pitchfork with the upper median line (UML) of the major descending pitchfork, only the fundamental factors could send the rate there, but is less likely, should increase sharply to hit this confluence. So the next upside target remains at the upper median line (UML) of the descending pitchfork, another leg lower could come only if the rate will drop again outside the ascending pitchfork’s body, a drop below the lower median line will open the door for more declines.