GBP/USD rallied and should resume the upside movement in the upcoming period. Has managed to climb above the 1.2977 previous high and now is targeting fresh new highs. Is trading in the green as the USD has taken a hit from the poor United States data, the traders were disappointed by the high impact data and have sold the dollar.

The USDX plunged right after the first US figures were sent to the public, but has managed to rebound and to recover in the last hours and now is trading above the 92.49 horizontal support. USDX is under massive selling pressure on the short term.

The Cable received support also from the United Kingdom Manufacturing PMI rose from 55.3 to 56.9 points, beating the 55.0 estimate. The greenback taken a serious punch from the US data, the Unemployment Rate increased unexpectedly from 4.3% to 4.4%, even if the estimate was 4.3%, the NFP was reported at 156K, lower versus the 180K estimate and compared to the revised 189K in the former reading period. The Average Hourly Earnings rose only by 0.1%, less versus the 0.2% estimate and compared to the 0.3% estimate, while the Revised UoM Consumer Sentiment decreased from 97.6 points to 96.8 points, has come in worse versus the 97.4 estimate. The greenback was supported only by the ISM Manufacturing PMI, which has increased from 56.3 points to 58.8 points, exceeding the 56.5 estimate and by the ISM Manufacturing Prices, which has managed to remain steady at 62.0 points, even if the economists have expected to see a drop to 61.9 points.

GBP/USD increased and is expected to approach and reach the 1.3046 static resistance. Price has lost altitude again in the last hours and stands much below the 1.2994 today’s high. A failure to reach and retest the mentioned resistance will signal an overbought and a potential drop in the upcoming period.

Only a valid breakdown below the 250% Fibonacci line (ascending dotted line) will signal a potential breakdown below the 1.2798 crucial support.