Price resumed the upside momentum and reached a major upside target, where has found temporary resistance. Could climb much higher as the perspective remains bullish on the Daily chart, has decreased a little in the last hours only because the USDX has slipped lower.
Technically should climb much higher in the upcoming period because is located in the buyer’s territory, even if has found minor resistance. The greenback has increased a little in the afternoon because is too oversold, but maintains a bearish perspective on the short term, we don’t have any reversal sign on the USDX.
The dollar index should reach the 92.49 static support in the upcoming days, only a rejection from there will send the price much higher again.
The Cable stays bullish also because the United Kingdom Manufacturing PMI incresed from 54.2 to 55.1 points in July, beating the 54.4 estimate, the important increase has signaled a further expansion. Moreover, the Nationwide HPI rose by 0.3% in the previous month, even if the traders have expected to see a 0.1% drop.
Personally, I’m expecting a further increase even if we’ll have a minor consolidation on the short term before will resume the upside movement.
Price has finally reached the upside line (ascending dotted line) of the ascending channel, could retest the broken 150% Fibonacci line (ascending dotted line) before will breakout above the ascending channel.
Could increase further also because has finally reached the upside line of the ascending channel, the next upside target will be at the lower median line (lml) of the minor ascending pitchfork. Could be attracted by the confluence area formed at the intersection between the lower median line (lml) and the 1.3527 major static resistance. However a failure to close above the upside line of the ascending channel could send the rate towards the 1.3046 static support and towards the warning line (wl1) of the ascending pitchfork.
The sentiment has changed on the Daily chart, so another leg lower is not expected at this moment, right now will be better to stay away from this pair because we don’t have any trading opportunity.