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GBPUSD : Might Bring Back the Bullish Bias

GBPUSD : Hourly Chart

GBPUSD is giving a bullish signal for short term as on the hourly chart the pair seems to be trading within an ascending triangle. The pair attempted to decline below the support trend line of the triangle but it again rose showing that the pair is still supported from the rising support trend line. The gain came after the downbeat personal spending data which showed that the U.S. personal spending fell .1% last month missing the economist’s expectation for an increase of .2%. Investors shall now be waiting for the Chicago PMI data which if beats the economist’s expectations might pull the pair down and the pair might break below the rising support trend line of the triangle and if the data misses the expectations the pair might break above the key resistance at 1.6604. However because of the low volatility in the market ahead of the extended weekend in US, the pair might also continue to trade within the triangle.

GBPUSD : Daily Chart

On the daily chart, if we insert Fibonacci Retrenchment levels the pair seems to be rising towards the 23.6 fib level and may find resistance from it. It will continue to rise until it finds resistance from this fib level. Breaking above this resistance level or above the 200 day SMA might bring back the bullish trend on the pair.