GBPUSD continues to fall with candles now nearing the support at price 1.5275 observed on the weekly chart. Last week’s plunge in prices was due to the increased bullish bets on the Dollar. Focus for this week would lie at support price 1.5275 where we may see a continuation of the bullish run of the pair. Given that today marks the start of a new month, traders may want to be patient and observe the market before engaging in any trades. This Friday’s release of U.S Non-Farm Employment Change data will be extremely critical as it will most probably set the trend direction for the pair for the new month.
Observing the daily chart, candles for the past week have started to show signs of a weakening bearish run after forming shorter bearish candles with long shadows. Candles now touch the 80 EMA where we may see a reversal occurring soon. U.K Manufacturing PMI is bound to be released later in the day which we may see an early reversal to the current bearish run.
Focusing on the H4 chart, bearish momentum starts to lose its strength after candles touched Fibonacci Expansion 141.4% at 1.5292. Additionally, candles now lie at the lower trend channel where we may see candles rebound towards the upper trend channel. Traders should be patient and await for the release of U.K Manufacturing PMI later in the day before engaging in any trades. However, it is also possible for candles to continue falling towards Fibonacci Expansion 161.8% at price 1.5217 before we see any significant rise in prices.