GBPUSD continued to move down significantly over the last two weeks and all key supports level broken easily. Bad UK economics data and dovish tone from BoE were the key catalysts pushed GBPUSD down further in term of fundamental. It looks like the Pound was free falling.
However, after touching 1.65300 zone yesterday, we think that the Cable may found it bottom there. GBPUSD closed yesterday at 1.6570 and is currently moving toward 1.66 already. It looks like a head and shoulder pattern is forming.
Although the medium term still bearish, but in our opinion, the short term trend is bullish now and we expect GBPUSD will move up today and the strength of the move will depend on how the market react with US dollar, the will be two risk events for US dollar at US market open.
Forex Trading Signal:
We will watch for signals around 1.6560 – 1.66 today to go long with the Cable today or go short around 1.6650.
+1.6700 – 1.67300
+1.6530 – 1.6570