“¢ The pair has been correcting over the past two trading session and the downtick has been along a descending trend-channel formation on the 1-hourly chart.
“¢ Given the recent sharp rebound from over two-month lows, the mentioned channel constitutes towards the formation of a bullish continuation flag chart pattern.
“¢ Meanwhile, the pair has managed to hold its neck above 100-hour SMA following the release of slightly better UK Services PMI, pointing to the prevalent dip-buying interest.
“¢ However, mixed technical indicators on hourly/daily charts warrant some caution before placing any aggressive bids and ahead of today’s key release of the US jobs report.
“¢ Hence, it would be prudent to wait for a convincing break in either direction before traders start positioning for the pair’s next leg of a directional move.
GBP/USD 1-hourly chart
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