1 Dec 2014
Bears attack at 1.5760 but GBP/USD developing a daily bullish engulfing pattern
Pound's recovery from 1.5600 following the good UK PMI manufacturing report found a selling interest at 1.5760 which sent it back to trade at 1.5730.
The GBP/USD is moving in positive territory for the day after the recovery of all Friday's losses. The pair is developing a bullish engulfing pattern on the daily candle. The cable rallied nearly 150 pips after hitting a fresh 1-year low at 1.5585 during the Asian session.
Latest better-than-expected ISM manufacturing data fueled bears appetite as the USD is taking back something of its mojo.
Currently, GBP/USD is trading at 1.5744, up 0.66% on the day, having posted a daily high at 1.5766 and low at 1.5585. The hourly FXStreet OB/OS Index is showing overbought conditions, alongside the FXStreet Trend Index which is slightly bullish.
GBP/USD sentiment
According to Valeria Bednarik from FXStreet, the 4 hours chart "latest candle opened above a flat 20 SMA, while indicators advanced from oversold levels, but hold below their midlines, still shy of providing a bullish signal; nevertheless, the upside is favored on a price acceleration around current levels, eyeing then recent highs set at 1.5825."
If the pair extends gains above 1.5760, it will find resistances at 1.5800 and 1.5825. To the downside, supports re at 1.5730, 1.5700 and 1.5680.
The GBP/USD is moving in positive territory for the day after the recovery of all Friday's losses. The pair is developing a bullish engulfing pattern on the daily candle. The cable rallied nearly 150 pips after hitting a fresh 1-year low at 1.5585 during the Asian session.
Latest better-than-expected ISM manufacturing data fueled bears appetite as the USD is taking back something of its mojo.
Currently, GBP/USD is trading at 1.5744, up 0.66% on the day, having posted a daily high at 1.5766 and low at 1.5585. The hourly FXStreet OB/OS Index is showing overbought conditions, alongside the FXStreet Trend Index which is slightly bullish.
GBP/USD sentiment
According to Valeria Bednarik from FXStreet, the 4 hours chart "latest candle opened above a flat 20 SMA, while indicators advanced from oversold levels, but hold below their midlines, still shy of providing a bullish signal; nevertheless, the upside is favored on a price acceleration around current levels, eyeing then recent highs set at 1.5825."
If the pair extends gains above 1.5760, it will find resistances at 1.5800 and 1.5825. To the downside, supports re at 1.5730, 1.5700 and 1.5680.