- GBP/USD had been struggling earlier in the session but is now only 0.16%.
- The price had been heading to the psychological 1.30 area but bulls stepped in ahead of the zone.
GBP/USD 30-min chart
GBP/USD pulled away from its highs last week and Sunday night through to Monday (London time) the price kept moving lower. Many times during the US sessions greenback weakness starts to kick in. It looks like it’s becoming a familiar pattern. Today the pound suffered a set back after UK manufacturing PMI missed consensus estimates of 53.6 to print at 53.3.
Looking at the chart, the price has moved into a broadening falling wedge type pattern. In the session, the price has now started moving higher through the black resistance zone at 1.3066. It will be interesting to see if the channel top breaks as it has been used two times already. If there is to be a break then the red resistance zone high at 1.3170 could be the target for the bulls.
The indicators are understandably bullish at the moment. The Relative Strength Index has pushed through the 50 area and is now moving to the oversold line at 70. The MACD histogram is green but more importantly, the signal lines are crossing the mid area once again.
This could be a sign that the trend might be continuing and but a break if the trendline would be a better confirmation. Later on, in the week the market gets the latest Bank of England rate decision and this could be pivotal for the pair.
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