Despite ending at the upper part of the range gbp/usd dropped to
support during early European session. One can clearly see a reversal pattern
forming on 15 minute chart 02:45 to 05:15 GMT, and then price collapsing. The
drop might be over as the pair is rallying up from support. We need to wait an
hour or two to get confirmation whether the drop is really over or will resume
itself.
There are no major Forex news releases scheduled for
today, so trading will probably be more technical than fundamentally driven.
We have two resistance levels ahead if price starts
pushing up. The first one is Asian session high at 1.5697, the second one is
last Thursday high at: 1.5723.
Support starts at 1.5630. I expect the level to
hold, but if it doesn’t the next level will come at 1.5605, which is the low of
20th of August.
Current rate of the pair is 1.5610. I will only
start buying if I see a reversal pattern around 1.5630 forming.
Another pair, which is a catalyst to this one, is
eur/gbp/ Euro is rising against Pound and when it starts dropping we might see
more Pound strength in Pound/US dollar pair.
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