GBPUSD continues on the bearish run ahead of U.K Services PMI. After finding exhaustion at Fibonacci Retracement 23.6% at 1.5478, the pair continues to fall forming an inverted hammer yesterday. With the release of U.K Services PMI and U.S ADP Non-Farm Employment Change data later, high volatility is expected.
Observing the H4 chart, candles have approached the support line at 1.5347. Candle movements start to slow down as seen by the declining length of the bearish candles with stochastic oscillator moving away from the oversold region. Selling action in the market starts to decrease and a retracement from the bearish run is expected.
Focusing on the H1 chart, candles were observed to be supported twice at 1.5356. Aggressive traders who are looking for a longing position could possible enter a buy limit at 1.5356 with a tight stop loss to trade a possible retracement before the release of news later in the day. However, given that bearish momentum of the pair remains strong, it is strongly advisable to watch for the breaking of support at 1.5356.
|Bullish for the next 3 hours/ Bearish in the long run||1.5292||1.5332||1.5356||1.5461||1.5538|