The GBP/USD has increased today and has recovered a little after the Friday’s drop, but unfortunately we don’t have a clear direction as the rate continues to move sideways. The rate is narrowing and I hope that we’ll have a clear direction very soon, right now is better to stay away from this pair  because we don’t have any trading opportunity. Remains to see what will happen on the USDX in the coming period, the index has fallen below the 101.00 psychological level, has decreased a little, but he still could increase in the coming days, I’ve said in the previous week that personally I believe that the index will move sideways in the coming weeks because he needs to recapture more directional energy before will climb towards fresh new highs.

The Cable has managed to increase today versus its rivals, not only against the greenback, was supported by the CBI Industrial Order Exectations, which has increased from 5 to 8 points, beating the 5 point estimate, moreover the Rightmove HPI rose by 2.0% in February, more compared to the 0.4% growth since January.

The pair has increased after another failure to reach the 50% Fibonacci line (descending dotted line), you can see that continues to move sideways on the short term, is trapped between the 1.2798 resistance and the 1.2089 static support. Is trading somehow at the half of the sideways movement, so we’ll have a clear direction only when the rate will escape from this extended range. Personally I’m expecting the price to reach the lower median line (lml) of the minor ascending pitchfork, then we may have a trading opportunity if this dynamic support will hold. The behavior has changed on the short term when the rate has started to make higher lows, but the sentiment remains unchanged as long as is trading inside the major descending pitchfork’s body, we could see a larger rebound if the price will have enough energy to take out the dynamic resistance from the median line (ML), another rejection from there will send the rate much lower again.