GBP/USD Range Setup (November 1, 2013)
GBP/USD is approaching the bottom of its range on the 1-hour time frame, and it just might reach that support level depending on the UK manufacturing PMI release. The report is projected to post a small decline, reflecting a slight downturn in the industry.
If the decline is minimal or if the actual figure comes in stronger than expected, GBP/USD could hold above the 1.5950 minor psychological support and bottom of the range. Stochastic is moving up anyway, which suggests that there’s a stronger possibility of a rally instead of a drop. A bounce could last at least until the middle of the range, right around 1.6050.
On the other hand, if the report comes in much worse than expected, GBP/USD could break below the 1.5950 mark trade until the next support zones at 1.5800 to 1.5850.
By Kate Curtis from Trader's Way