GBP/USD extends the latest gains and seems poised to reach another upside target in the upcoming hours. Is trading in the green as the USD is still sluggish versus all its rivals. The USDX drop again after the minor rebound, has failed to stay above the 92.00 psychological level, signaling that the bears are still in control. The dollar index is still trapped below an important dynamic resistance.
USDX is still under selling pressure even if has shown some oversold signals, technically is somehow expected to rebound on the Daily chart because the behavior could change on the short term. It seems like the USDX is developing a Falling Wedge Pattern on the daily chart, but only a validation will confirm that the index will turn to the upside again.
The United Kingdom data have come in mixed earlier, the Average Earnings Index increased by 2.1% in July, less versus the 2.3% estimate, has remained steady at 2.1% for the second month. The Cable received support from the Unemployment Rate, which has decreased from 4.4% to 4.3% in July, while the Claimant Count Change has dropped unexpectedly, it was reported at -2.8K in the previous month, versus a 0.8K estimate. The economic indicator remained steady in the negative territory.
The price has managed to increase and to reach the outside sliding line (SL) of the major descending pitchfork, but failed to reach the upside line of the ascending channel. Is trading right above the 1.3268 broken resistance level, a minor consolidation will bring more buyers on the short term.
Has managed to climb also above the warning line (wl1) of the minor ascending pitchfork, so, technically, is expected to increase further. However, only a valid breakout above the upside line of the ascending pitchfork will confirm a further increase towards the 1.3527 major static resistance.
Will be very important to see what will happen on the USDX after the United States data will be released, some positive data will help the USD to take the lead on the short term again.