After the release of the Manufacturing PMI this morning with actual figures being better than previous and forecasted figures there has been a spike in GBP up to the two descending trend line channels of which have been rejected up to now. I am expecting a little bit more retracement to the downside following this spike, however will be looking to see if there is a breakout from this outer trend line, at which point i will be trading bullish.
Although i don't trade fundamentals, there is a few news events which could cause big fluctuations in this pair today and tomorrow, especially with non-farm payroll so i will trade with caution.