In the latest session, GBP/USD's bullish run encountered a hurdle as PMI numbers reported today came in lower than expected. This data has tempered the optimism surrounding the Pound, which was previously bolstered by a positive shift in COT sentiment and expectations of robust PMI figures.
Technical analysis: As expected in our last analysis, GBP turned bullish and broke and closed above its resistance around 1.2650 showing great strength creating very clean higher lows and highs. The pair had been progressing towards a key resistance level, with newly established support around 1.2645. Given the unexpected PMI data, a reevaluation of the key level at 1.264 will be considered. The price has also broke out of its descending channel, a further indication of a bullish momentum. The Pound’s ability to maintain above this level will determine its momentum, as long as the price is moving above the key level, it is considered to be bullish.
Our position: While the previous sentiment was bullish, the disappointing PMI figures necessitate a cautious approach. The market may now favor a bearish strategy until further clarity emerges. We dont expected that to ruin GBP's momentum and we will continue to look for long positions on the GBP pairs.
Technical analysis: As expected in our last analysis, GBP turned bullish and broke and closed above its resistance around 1.2650 showing great strength creating very clean higher lows and highs. The pair had been progressing towards a key resistance level, with newly established support around 1.2645. Given the unexpected PMI data, a reevaluation of the key level at 1.264 will be considered. The price has also broke out of its descending channel, a further indication of a bullish momentum. The Pound’s ability to maintain above this level will determine its momentum, as long as the price is moving above the key level, it is considered to be bullish.
Our position: While the previous sentiment was bullish, the disappointing PMI figures necessitate a cautious approach. The market may now favor a bearish strategy until further clarity emerges. We dont expected that to ruin GBP's momentum and we will continue to look for long positions on the GBP pairs.
Trade active:
Got some more buys on the retest. GBP looks pretty bullish, keeping those higher lows and highs. Expecting a further push to the upside if the reports don't ruin it, both from the UK and the US.