The GBP/USD has decreased significantly on Friday, the price has failed to stay higher and the short rebound could be over, the currency pair has increased today, but only to retest a broken level, we could have a selling opportunity if the price will say below this obstacle. Today we had a poor economic calendar, we didn’t have many significant economic events, so the prices are driven by technical factors, however, we could have some volatility on the GBP/USD pair tomorrow as the United Kingdom will publish the inflation data, the US is to release high impact data as well, remains to see how the price will react after the economic figures will be sent to the public. The UK’s CPI could increase by 0.4%in June, the inflation could increase further, while the Core CPI may increase by 1.3%, the cable could receive a helping hand from the economic data, the USD could increase as well if the Building Permits will increase from 1.14M to 1.15M, moreover the Housing Starts could increase to 1.17M, and could boost the greenback.

The price is retesting the median line of the short ascending pitchfork, could drop further if this dynamic resistance will hold, we’ll have a selling signal if the rate will test the confluence area formed at the intersection of the median line (ml) with the sliding parallel line (descending dotted line), if this scenario will take shape, then the pair will approach the lower median line of the short ascending pitchfork. The perspective remains bearish as the price has failed to retest the median line (ML) of the medium term descending pitchfork, the pair could drop further inside the descending pitchfork’s body , could approach the lower median line (LML) again in the coming period if the US dollar index will have enough energy to jump above the 96.70 static resistance, any rejection right now could send the USD tumbling against al its counterparts. The pair could increase only if will jump again above the minor median line and above the sliding line (descending dotted line).