The currency pair has dropped sharply on Thursday, but now is fighting hard to recover and to stay higher on the daily chart. Is trading in the green and tries to retest some important resistance levels, a rejection will announce another minor decrease. GBP/USD is moving sideways on the short term, but remains to see if this will be an accumulation or a distribution movement.
I want to remind you that the perspective remains bullish despite a minor decrease, could come down only if the USDX will jump higher on the short term. The dollar index move in range on the short term as well, but a valid breakout above the 92.49 static resistance will open the door for more buyers.
Technically, the USDX is still trapped under some very important resistance levels, so is premature to say that we’ll have a reversal.
Price failed to stay above the 150% Fibonacci line (ascending dotted line) and could drop in the upcoming days. Has increased today and tries to retest the 150% line, actually, it could be attracted by the confluence area formed between the 150% Fibonacci line with the upper median line (uml) of the minor red descending pitchfork.
GBP/USD could come down to retest the warning line (wl1) of the ascending pitchfork. A rejection from the confluence area will bring more sellers in the game, while a valid breakout will accelerate the upside movement.
