GBPUSD holds above 1.48 ahead of U.K Manufacturing PMI. Candle yesterday closed at 1.4815 after reaching a low 1.4754 forming a spinning top on the daily chart. Bearish momentum starts to decline and we may see a possible reversal of prices today. With the release of U.K Manufacturing PMI and U.S ADP Non-Farm Employment Change later in the day, volatility is expected to be high and we may see prices break out of the range between 1.4726 and 1.4950 either today or on Friday where the focus would lie on the release of U.S Non-Farm Employment Change data.
Observing the H4 chart, candles continue to lie within the downward sloping trend channel. 55 EMA continues to hold as a resistance for the pair and current candle now lies at the upper trend channel. Should candles exhibit signs of a continuation of the downtrend at the upper trend channel, a shorting position can be entered with the end profit taking level at 1.4713. However, given that bearish momentum has started to weaken over the week as observed on the daily chart and candles show support at 1.48, trend direction is slightly more biased towards the bullish side instead.
Focusing on the hourly chart, prices were observed to fall after reaching the upper trend channel but failed to close below 1.4800. Additionally, candles were supported by the 55 EMA and candles now once again test the upper trend channel. Should candles break above the upper trend channel, it is highly expected for the pair to go on the bullish run today.
|Bullish if candles break above trend channel||1.4713||1.4770||1.4800||1.4850||1.4900||1.4982|