The GBP/USD rallies and tries to reach new highs on the short term. GBP has taken the lead again and appreciates versus all its rivals not only against the greenback. The dollar drops versus all its rivals as the USDX has touched new lows even if the FOMC Minutes have signaled a potential rate hike in December.
The USDX dropped much below the 93.00 psychological level and should drop much deeper in the upcoming days. USDX is still expected to approach the 92.49 static support, where he may find support again. Most likely the dollar index will develop an Inverse Head and Shoulders pattern on the Daily chart, which will signal a USD dominance in the upcoming weeks.
The USD is somehow expected to climb much higher in the upcoming weeks ahead of the December potential hike.
The GBP/USD is trading in the green and ignored the outside sliding parallel line. Price is challenging the 1.3268 static resistance and is expected to take this out as well and to approach the upside line of the ascending channel.
I’ve said in the previous reports that the perspective remains bullish on the short term as long as is trading within the ascending channel between the 150% and 250% Fibonacci lines. A retest of the 250% Fibonacci line will confirm an increase towards the upper median line (uml) of the minor descending pitchfork.
