Forex: GBP/USD bounces higher in light Asian flows; steady around 1.5960

FXstreet.com (San Francisco) - It was a relatively quiet day in Asia, with only China’s positive November HSBC ‘flash’ manufacturing PMI numbers stirring things up a bit and giving trader’s reason to take on more risk. But the session’s key event risk has passed, and the spotlight now turns to European PMIs, with France, Germany, and the EU to release latest figures from 8 to 09:00 GMT, expected to remain in contraction.

After gaining ground for a fifth day, GBP/USD extended its bullish trend momentum in earlier trade, reaching as high as 1.5968, but now stands at 1.5960 from 1.5950 at the close in New York. “For today, the roof of the daily descendant channel lays around 1.6100, too far away to consider a test; however, the continued recovery from the base of the mentioned channel, gives Pound a clearer bullish case,” says Valeria Bednarik, Chief Analyst at FXstreet.com. “Stronger resistance comes around the 1.6065 level, and that seems a more logical target if the upward momentum continues.” If GBP/USD reverses course, Ms. Bednarik identifies support levels at 1.5920, 1.5885 and 1.5850.

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