Yesterday was a quiet trading day when US market closed for Labor day, most of the major pairs moved within a narrow range. GBPUSD tried to break 1.662 zone to move up further but price had been strongly rejected around this zone, especially after UK PMI and Mortgage approval data released which disappointed traders. However, the Pound closed the day above opening price and above 1.66, the buyers still want to hold long even after more bad data released.
When reviewing the chart, it looks like GBPUSD is forming a round bottom now and we expect GBPUSD will move up further if GBPUSD break above 1.66500. However, with USDJPY is moving up steadily, it is not easy for the Pound to recover if not supported by strong economics data or a clear and hawkish tone from BoE.
Forex Trading Signal:
We will watch for signals around 1.65300 – 1.6700 today to go long with the Cable today or short around 1.66300 – 1.66500.
+1.6700 – 1.67300
+1.6530 – 1.6570