The GBP/USD increased little in the morning, even if the Pound has received support from the United Kingdom data earlier. The Cable remains sluggish on the short term, we’ll see what will happen in the upcoming days as the price hovers above crucial dynamic support.

Price continues to challenge an important support line, I’ve said in previous weeks that the rate should take out the mentioned support if will reach it, but unfortunately, the USDX has found strong resistance and has started a minor corrective phase. USDX is trading at 94.50 level and looks determined to drop even more on the short term, I’ve said in the last day’s that a drop below the 94.30 will signal a larger drop.

I’ve added the USDX’s chart to show you why the USD could drop in the upcoming period. USDX is under selling pressure right now and is pressuring the 250% Fibonacci line (ascending dotted line) and it could retest also the Inverse Head and Shoulders Neckline. Only a valid breakdown below the neckline will invalidate a further increase and will confirm a drop at least till the median line (ML) of the descending pitchfork.

It could move in range on the short term before will start another upside movement towards the upper median line (uml) of the descending pitchfork.