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Last week the US dollar was supported by the new tapering of stimulus. The USDX raised to 81.31. The US economy seems to be recovering and the dollar may become even stronger.
On the other hand on a daily chart the GBPUSD is in strong up-trend and the current fall seems to be a correction as it hasn't broke the EMA50 which serves as a support level since August 2013. But if we have a quick look on the weekly chart we'll see that the pair is consolidating since 2009 and currently is almost at the top.
But what about the short term trading? Today we have two reports to look - the UK PMI Manufacturing at 09:30 GMT and US ISM Manufacturing at 15:00 GMT. The current price of the pair is about 1.6380 which is close to the pivot support 1 point at 1.6370.
If the first report is weak than expected the S1 will not hold a S2 may be tested. For this scenario I'll have a sell order below 1.6370 with target pivot point S2 at about 1.6300. If this point is reached before the US report and the report excees the expectation the pair may fall even more. If the UK report exceed the exception a bounce to 1.6490 may be in place, but I'm not willing to take positions again the US dollar right now.
Good look!
On the other hand on a daily chart the GBPUSD is in strong up-trend and the current fall seems to be a correction as it hasn't broke the EMA50 which serves as a support level since August 2013. But if we have a quick look on the weekly chart we'll see that the pair is consolidating since 2009 and currently is almost at the top.
But what about the short term trading? Today we have two reports to look - the UK PMI Manufacturing at 09:30 GMT and US ISM Manufacturing at 15:00 GMT. The current price of the pair is about 1.6380 which is close to the pivot support 1 point at 1.6370.
If the first report is weak than expected the S1 will not hold a S2 may be tested. For this scenario I'll have a sell order below 1.6370 with target pivot point S2 at about 1.6300. If this point is reached before the US report and the report excees the expectation the pair may fall even more. If the UK report exceed the exception a bounce to 1.6490 may be in place, but I'm not willing to take positions again the US dollar right now.
Good look!
