GBP/USD erased the morning losses and tries to climb higher again. Price has found strong support and tries to recover after the minor drop. The perspective remains bullish on the short term despite the minor drop, has come only to retest the bulls.

Price continues to stay in the green area as the USD was punished by the USDX’s drop. The dollar index has slipped lower on the mixed United States data and after the failure to stay above a dynamic resistance. USDX failed to reach the 93.81 horizontal resistance and now could come down to retest the 92.49 static support.

I’ve said in the last articles that the USDX could drop again after the impressive rally, it could try to retest the broken levels before will resume the upside movement. The dollar index could develop an Inverse Head and Shoulders on the short term, but this is far from being confirmed. Only a valid breakout above the 93.18 will confirm this pattern.

The USDX slipped lower as the United States Unemployment Claims have increased more than expected, were reported at 272K jobs in the previous week, much above the 269K estimate and above the 260K estimate.

Price increased after the failure to stay below the upside line of the ascending channel and after the retest of the warning line (wl1). It seems that we’ll have a false breakdown below the up sloping red line, signaling that will start another upside momentum.

The perspective remains bullish on the short term as long as is trading above the red line and above the warning line (wl1) of the ascending pitchfork.

However, a drop below the mentioned levels will announce a further drop towards the outside sliding line (SL) and towards the 250% Fibonacci line.

We’ll see what will happen when the price will approach the 1.3656 previous high, a failure to reach it will signal an exhaustion and a massive drop in the upcoming period, but is premature to talk about this right now.