After making a new 5.5 years high in two weeks ago, GBPUSD has declined for 8 days straight. The short term bullish momentum is losing day by day mainly due to fundamental reason. We expect trader will continue to unwind their long position when the tone from BoE is unclear on when to raise interest rate, especially when economic data has been mixed.
Currently the Cable is trading around 1.6970 zone, if this level hold, we can expect some recovery from GBPUSD after falling down for 8 days straight. There will be no significant report from UK until this Friday, the move of the cable will depend on the market reaction to US dollar.
1.69200 will be the next key support zone for the Pound to watch and we dont think that GBPUSD will break this level easily.
Forex Trading Signal:
Will will watch for buy signals around 1.6970 or sell signals 1.7000 – 1.70400 for safer trading today.
+1.7300 – 1.7330
+1.7040 – 1.7065
+1.6700 – 1.67300
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