GBPUSD Edges Lower - July 22, 2016

The GBP/USD has decreased sharply today, the rate has failed to continue the bullish momentum and now is expected to drop further in the coming days, the currency pair is expected to approach the 1.2784 static support, he could find strong support at this level. The Cable is going down even if the economic data has come mixed, the UK’s Services PMI has decreased from 52.3 to 47.4 points, the services sector has dropped much inside the contraction area, the poor data have weakened the Pound, the UK’s currency is decreasing versus all its rivals, could reach fresh new lows till the end of the day.Moreover the ManufacturingPMI has dropped from 52.1 points to 49.1 points, has plunged in the contraction territory, has fallen less than the 47.8 points prediction. The US is to release also the Flash Manufacturing PMI, the economic indicator could increase from 51.3 to 51.9 points and could boost the USD.

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The pair remains under massive selling pressure, is expected to drop because has failed to jump above the lower median line of the major descending pitchfork, the pair is decreasing inside the minor descending pitchfork, the price has retested the upper median line of the minor descending pitchfork.Most likely the rebound has ended because has failed to retest the lower median line of the major descending pitchfork, the perspective remains bearish as long as the rate will stay below the major descending pitchfork. The GBP/USD has managed to decrease below the 1.3200 psychological level and is expected to drop much below the 1.3000 level. Remains to see what will happen in the coming week after the Federal Reserve will publish the Federal Funds Rate, the Fed is expected to maintain the rate on hold at 0.50% and could disappoint the traders again, however, if the Fed will increase the rate, then the USD will edge higher aggressively, but a dovish speech will ruin the greenback.The downward movement will resume only if the rate will fall below the 1.2784 horizontal support, the sentiment could change if the price will fail to take out the static support.

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