The GBP/USD has decreased a little today, but the pair is moving sideways on the short term, we have a minor consolidation here, remains to see the direction in the coming days. The currency pair remains under selling pressure after he Brexit referendum, but we could see another leg higher in the coming weeks if the price will have enough energy to stay above the static support from 1.3114 level, the rate is located above this downside obstacle, the Cable needs a bullish spark from the economic data, the USD could drop further if the United States economic data will come worse than expected.
The rate is moving sideways, but looks like that has lost the bearish momentum, another bullish momentum could come if the rate will stay 1.3114 static support, you can see that the price has failed to stay below this level. GBP/USD could retest even the lower median line of the ascending pitchfork before will climb higher again, the perspective remains bullish as long as the rate is trading inside the ascending pitchfork’s body.
The price action could form an Inverse Head and Shoulders pattern if the rate will increase and will stabilize above the sliding line (descending dotted line), you can see that this line represents a very strong resistance on the short term, however the rate could increase inside the ascending pitchfork.
We had a sign that the sentiment could change when the price has failed to close below the lower median line of the medium term descending pitchfork, has failed to close right on this obstacle, signaling that the bulls could drive the price higher again. You can see that I’ve added a minor descending pitchfork, the price has failed to reach and test the lower median line of this minor pitchfork, moreover the rate has jumped above the minor median line, has retested this level and now looks determined to increase again, could edge higher if will manage to escape from the minor descending pitchfork, the downward movement will resume only if the price will breakout from the ascending pitchfork. Maybe will have a clear direction today after the US will release the economic data.