The GBP/USD rallied aggressively and reached fresh new highs on Friday. Price has managed to take out some important resistance levels and now is trading in the green zone. Has slipped lower in the last hours and have erased the morning gains.

GBP/USD has opened with a gap up in the morning, but don’t worry because the perspective remains bullish despite a minor decrease. A little retreat could will be natural after the last two day’s impressive rally.

Price has found temporary resistance and now is trading in the red as the USD is forced to appreciate by the USDX increase.

The dollar index has managed to increase and seems poised to climb towards fresh new highs in the upcoming period. Technically, the behavior could change on the short term (could make higher lows). The Cable drops right now, but remains to see how will react after the BOE Gov Carney’s speech. The United Kingdom Rightmove HPI dropped by 1.2% in September, more versus the 0.9% drop in the previous reading period.

The US is to release the NAHB Housing Market Index and the TIC Long-Term Purchases later, but I don’t believe that will have a significant impact.

Price has climbed as much as 1.3618 today, above the 1.3615 Friday’s high, but wasn’t able to stay there and now has come back to retest the broken 1.3527 static resistance.  Could consolidate the latest gain in the upcoming days. Is trading much above the 250% Fibonacci line (ascending dotted line), but could retest it before will try to climb towards the lower median line (lml) of the ascending pitchfork.

Price is strongly bullish on the short term after the breakout from the ascending channel’s body, the next major upside target will be at the 1.4074. GBP/USD remains bullish until the sellers appear, right now we don’t have any bearish signal.

Only a drop somewhere below the waring line (wl1) will confirm a significant drop in the upcoming period, but is premature to talk about this right now.