GBP/USD rallied and resumed the Friday’s bullish candle, is strongly bullish because has managed to jump above 1.3158 previous high, should reach new highs as the dollar index could drop much deeper. USDX is pressuring the 93.00 psychological level and most likely will reach the 92.49 long term static support. I’ve said in the previous weeks that the USDX is under massive selling pressure and could hit fresh new lows, is seeking for strong support, remains to see when will find one because is very heavy and looks determined to erase everything in its way.

The United Kingdom Net Leading to Individuals decreased from 5.7B to 5.6B in June and has managed to come in better than the 4.9B estimate, while the Mortgage Approvals remains steady at the 65K level for the third month in June. Moreover, the M2 Money Supply dropped by 0.2% in the previous month, even if the traders have expected to see a 0.2% growth, the economic indicator dropped for the second consecutive month.

The greenback goes down as the United States data have failed to save it from downside, the USD has taken a hit from the Chicago PMI, which has dropped much more than expected.

Price resumes the upside movement and is very close to reach the upside line (ascending dotted line) of the ascending channel. Right now is pressuring the 150% Fibonacci line (ascending dotted line), but most likely will close above it because the USDX will hit new lows in the upcoming hours.

Technically should climb much higher after the retest of the upper median line (UML) of the major descending pitchfork, a valid breakout above the upside line of the ascending channel will confirm a further increase towards the lower median line (lml) of the minor ascending pitchfork.

It could also be attracted by the confluence area formed between the lower median line (lml) and the 1.3527 major static resistance. Right now only another failure to close above the 150% Fibonacci line and above the upside line of the ascending channel will signal a minor drop.