GBP / USD
On the first day of the week, the British pound lost 85 points, but a significant part of this declined 36 points at the opening price of the session. Furthermore, the pound had pressed the Manufacturing PMI in August, and fell from 53.8 to 52.8. Price breaks in the foreign exchange market failed to fill gap or and it only close after a few months with strong fundamental factors, but this is not the case, as the market opened and we can see the technicals only upon the closing of pending orders before the weekend. Today, the output of British Construction PMI for August shows 54.9 expectation against 55.8 in July, while the US ISM Manufacturing PMI is projected also to decrease from 58.1 to 57.6, which does not contradict the technical opportunity for a price reversal from the support range 1.2827 / 44, and there is also support for the blue trend line on the daily chart.
On the 4-hour chart, the price was fixed under the blue trend line and the balance line (red indicator), but under the circumstances this could be a false signal. In this case, the graph of the higher timeframe (day-time) signal line shows the Marlin oscillator had an upward reversal from the border of the descending channel, which can be seen on the fourth black candle that has no potential to drop. We are waiting for the closure of the gap, a price increase of at least to 1.2958. The market would likely to remain delicate until US labor data issued on Friday.
* The presented market analysis is informative and does not constitute a guide to the transaction.
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