British Pound shows bullish momentum versus US dollar and the magical number of 1.5700 that has had for around ten times has to be broken any time now. However, if you look at 15 minute chart and the bearish formation that has formed around the above mentioned level shows that there still might be a dip below Asian session lows before real buying pressure comes back. There is some fundamental data that might impact exchange rate of gbp/usd. We have – Markit Mfg PMI (AUG P) coming at: 13:45 GMT (Expected: 53.8, Prev: 53.8)
In fact, as I am writing the post Asian session low has been broken. We need to wait for signs of a reversal in order to go long (which is what I expect). Do not forget that momentum is still bullish for the week. Lots of breakout traders have been beaten trying to buy a break above 1.5700. At one point they will succeed, but they will have lost too much money on their attempt. Better wait for a dip and buy at support. At least this type of strategy works for me!
Current level of gbp/usd (Asian session low broken)