With the morning surge attributed to a combination of positive Greek commentary alongside month end flows against a volume thin backdrop, the retracement to support at R1 indicates that todays trading so far has had a technical edge to it.
Calendar wise FOMC Member Raskin is scheduled to speak at 13:30 GMT before Chicago PMI at 13:45 GMT and FOMC Member Williams’ speech at 16:25 GMT. Later this evening MPC Member Bean will speak at 18:00 GMT.
Valeria Bednarik, Independent Analyst for FXStreet.com, notes that GBP/USD is trading above 1.6100 but unable to break above the descending trend line coming from 1.6308, currently at 1.6120. Looking at an four hour chart she notes that the latest candles have been dojis, reflecting the battle between buyers and sellers going on around this level.