The GBP/USD extended the latest gains and seems motivated to hit new highs in the upcoming days, is trading in the green, signalling that the bulls are in full control. The dollar has dropped further as the dollar index has failed one again to close and stabilize above the 99.12 static resistance, I’ve said in the previous articles that the dollar will increase again, only if will have the ability to consolidate above the mentioned static resistance level (99.12).
The greenback stay lower versus the Cable as the United States economic data have come in mixed, the Advance GDP rose by 0.7% in Q1, less versus the 1.3% estimate and compared to the 2.1% growth in the previous reading period, while the Advance GDP Price Index rose by 2.3%, beating the 2.0% estimate and versus the 2.1% in the Q4.
The Employment Cost Index rose by 0.8% in the first quarter, beating the 0.6% forecast and the 0.5% growth in Q4, the Chicago PMI increased from 57.7 to 58.3 points, beating the 56.9 estimate. The dollar has taken a hit from the Revised UoM Consumer Sentiment , which has dropped from 98.0 points to 97.0, even if the traders have expected to see an increase to 98.1 points, the revised UoM Inflation Expectations rose by 2.5%.
Price has resumed the upside movement after a minor consolidation around the 1.2798 former static resistance, the perspective is bullish as long as the price is trading inside the blue ascending pitchfork’s body. The major upside target remains at the upper median line (UML) of the major descending pitchfork, will reach this line in the upcoming weeks if the dollar index will fail to climb again above the 100.00 psychological level.
The pair is approaching a dynamic resistance, could hit the 50% Fibonacci line (ascending dotted line), where he could find resistance again, a rejection from this level will send the price down towards the lower median line (lml) of the minor ascending pitchfork. Should increase further as the sentiment has changed when the rate has broken above the median line (ML) of the descending pitchfork.