The price is struggling to hold ground after the yesterday’s drop. GBP/USD stays above the Monday’s gap up, signaling that the bulls are still in the game on the short term. Technically is still expected to climb much higher because is located in the green area.

Has increased despite the USDX’s rally, as you already know, the dollar index has jumped much higher also because has received a helping hand from the United States economy. Remains to see how long the USDX rebound will be because only a temporary bounce back will fail to drag the GBP/USD in the seller’s territory.

Price dropped in the first part of the day, but increased surprisingly, even if the United States data have come in better. On the other hand, the United Kingdom data have come in mixed, the Net Leading to Individuals decreased from 5.5B to 4.8B, much more versus the 5.3B estimate, the M4 Money Supply increased by 0.5%, more versus the 0.4% estimate, while the Mortgage Approvals rose from 65K to 69K, beating the 66K estimate.

Fundamentally speaking, the dollar is somehow expected to appreciate in the upcoming hours as the ADP Non-Farm Employment Change surged from 201K to 237K in August, beating the 185K estimate, while the Prelim GDP rose by 3.0%, exceeding the 2.7% estimate and the 2.6% growth in the former reading period.

Price increased today, but failed to approach the 1.2977 previous high and now is expected to drop towards the 250% Fibonacci line (ascending dotted line), where he may find support again. I want to remind you that only a valid drop below the 1.2798 and below the upper median line (UML) will confirm a larger drop in the upcoming period. Price is bullish until the sellers appear, could move in range on the short term.

We’ll see what will happen because we have several scenarios, could drop significantly after the retest of the downside line of the Rising Wedge pattern, but the confirmation will come only after a valid breakdown below the 1.2798 static support.