The GBP/USD has changed little today, we’ll see how will react after the US President-Elect Trump’s speech, this is today’s main event, personally I’m expecting to see some volatility in the last hours of the week. We could have significant movement also in the coming week, the fundamental factors will lead the price, so you should be careful not to suffer a heavy loss. Is very important to see what will happen on the USDX in the coming days, the index remains under pressure on the short term, is located above the 101.00 psychological level. Personally, I expect to see a minor consolidation on the USDX before will try to climb much higher, the index has found temporary support right above the 100.00 psychological level on the short term, we’ll see what will happen because the fundamental factors will take the lead.

The Cable has taken a hit from the United Kingdom Retail Sales, which have dropped by 1.9%, more compared to the -0.1% estimate and more compared to the 0.1% drop from the previous reading period. The Retail Sales have dropped unexpectedly lower, this is the biggest drop since May 2012, so the Pound was somehow expected to drop a little today.

The rate has decreased a little in the last hours, but remains trapped inside the extended sideways movement, was expected to increase on the short term again after the false breakdown below the 1.2089 static support and below the lower median line (LML) of the major descending pitchfork. The price has found temporary resistance right above the 1.2328 static obstacle, but the price could still approach and reach the next important upside target from the 50% Fibonacci line (descending dotted line), could be attracted also by the median line (ml) of the minor ascending pitchfork if will continue this sideways movement.

Technically we could have a minor decrease with target at the lower median line (lml) of the minor ascending pitchfork, could come to retest this dynamic support before will increase further, I want to remind you that the behavior has changed on the short term and should try to reach the median line (ML) of the major descending pitchfork.