By Olimpiu Tuns, MultiBank Exchange Group

Source: MultiBank Exchange Group

GBP/USD – slips lower

The currency pair is trading in the red right now and most likely will resume the minor retreat after the failure to climb above the 1.3047 previous high. Looks exhausted on the short term and could come down to test and retest some important support level. The greenback will drive the rate down if the USDX will have enough energy to stay above the 96.00 psychological level and to resume the minor rebound.

Price is driven by the technical factors right now, we have a poor economic calendar today, however, the United States figures could bring some action in the afternoon.

You can see that is trading within an ascending channel on the daily chart, but failed to reach the upside line of this pattern, signalling an overbought. Has also failed to approach and reach the upper median line (UML) of the major descending pitchfork (this represents a major dynamic resistance). Is expected to reach and retest the 1.2798 static support and also the first warning line (wl1) of the minor ascending pitchfork, a valid breakdown below these levels will confirm a larger drop.

The upside movement will resume only if the rate will take out the major resistance from the UML, this scenario will take shape only if the USDX will drop below the 95.45 previous low.

By Olimpiu Tuns, MultiBank Exchange Group