GBP/USD is going down as the USD is helped by the USDX’s rebound. Price continues to challenge a major dynamic support, a valid breakdown will open the door for a major drop in the upcoming period. Right now is better to stay away until we’ll have a clear direction and a fresh trading signal, at this moment we don’t have any trading opportunity.

Technically is somehow expected to drop much deeper in the upcoming period, but we still need a confirmation because is located above a crucial support level. USDX increased today, but I’m not very confident that the bulls are so strong to send it above the 93.81 static resistance.

Most likely we’ll have a range movement on the USDX before we’ll have a significant move. An accumulation will signal an impressive rally, this scenario will take shape only if the Federal Reserve will announce another rate hike till the end of the year.

The Cable drop on the UK’s mixed data, the Public Sector Net Borrowing dropped to -0.8B in the previous month, more below the 0.0B estimate and below the 5.7B in the previous reading period, while the CBI Industrial Order Expectations could decrease from 10 to 8 points later. The US is to release some low impact data as well.

Price failed to resume the yesterday’s bullish candle and now looks very heavy. Is pressuring the upper median line (UML) of the major descending pitchfork and could approach the 1.2798 static support in the upcoming hours if the USDX will jump above the 93.50 psychological level.

A major drop will be confirmed after a valid breakdown below the 1.2798 critical support. Is somehow expected to drop after the breakout from the Rising Wedge pattern. We have an important downside target at the downside line of the ascending channel, but as I’ve just said, the price needs to stabilize below the mentioned horizontal resistance. A rebound could come only if the support levels will hold and if the USDX will drop again.