GBP/USD Rally Continuation? (November 6, 2013)
GBP/USD bounced off the established support level around 1.5950 in yesterday’s trading, as the UK printed a better than expected services PMI figure. The pair was also able to break above the 1.6000 major psychological level then consolidate at 1.6050.
At the moment, GBP/USD is forming a bullish flag pattern, which hints at a rally continuation. Manufacturing production and Halifax HPI are both due from the UK today and these could serve as catalysts for a stronger rally or a potential selloff.
Setting a long order at the top of the consolidation pattern (1.6075) could catch the momentum of an upside move, possibly until the 1.6150 minor psychological resistance or the top of the range around 1.6200.
A short order below consolidation (1.6025) could catch the selloff, possibly until the bottom of the range again at 1.5950.
By Kate Curtis from Trader's Way