GBP/USD has turned to the downside right after the dovish BOE and now is very close to reach a first downside target. The pair is trading in the red even if the USDX is going down as well, the index has erased the morning gains and now is moving towards the 92.55 yesterday’s low.

USDX maintains a bearish perspective on the Daily chart, is still unable to find strong support, its next downside target will be at the 92.49 major static obstacle.

Only an accumulation above the 92.49 support will signal a reversal because a breakdown below this level will open the door for more declines.

Price was dragged lower by the fundamental factors, but you should know that the outlook remains bullish despite this minor retreat.

GBP/USD decreased also because was rejected by a strong dynamic resistance, so the current drop is natural.

As you already know, the Bank of England has maintained the Offcial Bank Rate steady at 0.25%, matching expectations, the MPC members have voted by a majority of 6 to 2 for this decision. Moreover, the Asset Purchase Facility remains on hold at 435B, matching expectations. Cable dropped despite the UK’s Services PMI increase from 53.4 to 53.8 points, beating the 53.6 estimate.

Is approaching the 1.3046 static support after the false breakout above the upside line (up red sloping line) of the ascending channel. I’ve said in the previous articles that the rate could still come back to retest the warning line (wl1) of the minor ascending pitchfork. We’ll have a buying opportunity from there, technically is still expected to increase further after the retest of the upper median line (UML) of the major descending pitchfork. Only a drop below the warning line (wl1) will invalidate a further increase.

The next major upside target will be at the sliding line (descending dotted line), a failure to reach this level will signal a broader drop in the upcoming weeks. Right now we don’t have any reversal signal, the minor corrective phase is natural ahead of another bullish momentum.