UK Manufacturing PMI came out better than expected and it gave a boost to GBPUSD. The pair is currently retracing in the wake of Thursday’s interest rate decision. From intraday point of view we can identify POC in 1.5345-65 zone. L4, Previous breakout point ( red rectangle ) and proximity of 61.8 imply that the price could bounce from the zone towards 1.5435 – the top of right shoulder. Only if the price keeps the momentum it could reach 1.5500 and only a strong close (H1, H4) above 1.5500 would target 1.5590.
At this point POC could reject the price but if it fails and closes below 1.5320 (X cross of inner trend line and L5), bullish momentum will be temporarily negated. Adding to that Yen usually strengthens when equities drop and we can see a positive GBPUSD correlation with Yen pairs, so one more reason that GBPUSD should fall towards POC.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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