Pound surged up to 1.6643 early Europe against the greenback, posting there a fresh 2-week high, but worse than expected UK data dragged the pair quickly down to current levels: Markit Manufacturing PMI ticked down to 52.5 from previous 54.8, and below the expected 55.0.
The pair returned therefore below the daily descendant trend line coming from this year high, today at 1.6630, and consolidates rate below it with the 4 hours chart showing a mild positive tone, as per price above a slightly positive 20 SMA and momentum heading higher above 100. But the same chart shows the spike higher was short lived, with no candle opening so far above the mentioned trend line, which stands as critical level to break to confirm a move higher: a candle opening above it required, followed by an advance above mentioned daily highs, to confirm an extension up to 1.6670/80 price zone.
Below 1.6580 on the other hand, risk turns back to the downside, eyeing a retest of recent lows around 1.6530.
View Live Chart for GBP/USD
The pair returned therefore below the daily descendant trend line coming from this year high, today at 1.6630, and consolidates rate below it with the 4 hours chart showing a mild positive tone, as per price above a slightly positive 20 SMA and momentum heading higher above 100. But the same chart shows the spike higher was short lived, with no candle opening so far above the mentioned trend line, which stands as critical level to break to confirm a move higher: a candle opening above it required, followed by an advance above mentioned daily highs, to confirm an extension up to 1.6670/80 price zone.
Below 1.6580 on the other hand, risk turns back to the downside, eyeing a retest of recent lows around 1.6530.
View Live Chart for GBP/USD
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