GBP/USD: We Are Currently Testing 1.3000 Once More
Good afternoon Traders and welcome back to EverythingFX.
The Great British Pound is currently trading at 1.30620 against the US Dollar during today's London session.
Starting off on the weekly timeframe we can see price is trapped in a range of roughly 250 PIPs with multiple tests of support at 1.30000, as well as multiple tests of resistance at 1.32500. Looking at the daily timeframe we can see price formed a nice bullish rejection of 1.30000 as well as a rejection from our ascending trendline, where we have currently spiked lower on the day.
Looking on a 4-hour timeframe we can see price is currently stalling where I personally will be waiting for a reversal as I do favour further upside on Cable going forward. We could look for some bullish price action which will indicate a potential reversal from the highlighted zone which is illustrated on the screenshot above. Our next level of resistance is 1.32500 as well as 1.35000 which would provide a good swing target. What would invalidate my bias on the pair is a daily break and closure below 1.30000 which would line up with a break of the trendline.
Fundamentally we had Manufacturing PMI's that came out this morning for the UK which came in at 49.7 lower than consensus of 49.8 however the market didn't react much off of this data as everyone is still waiting to see what will happen with Brexit. The UK has until the 12th of April where they need to decide in the House of Commons what will happen next!