4 Jul 2013
GBP/USD retraces into 1.5250 post bullish engulfing day
FXstreet.com (Barcelona) - GBP/USD exchange rate is current around the 1.5255, developing a minor retracement following the vigorous bounce produced yesterday, when a stampede of bulls took the pair from 1.5135 to round number 1.53.
The British Pound has been recently boosted by an upbeat Markit Services PMI for the month of June, with the data coming at 56.9 vs 54.5 expected. The deviation was 2.5 positive, thus taking speculative short positions on the wrong foot.
GBP/USD prints bullish engulfing candle
The GBP/USD daily chart show a sizeable bull engulfing bar, which has managed to wipe out the past 3 losing days. On this impulsive bull reversals, it is likely that traders tend to shift focus to become more friendly to dip-buying.
According to Valeria Bednarik, Chief Analyst at FXstreet.com, "Despite hourly indicators look exhausted in overbought territory, the fact that price holds suggest the upside remains favored." Steady gains above 1.5290 should favor an upward movement into 1.5370 as next target, Bednarik added.
The British Pound has been recently boosted by an upbeat Markit Services PMI for the month of June, with the data coming at 56.9 vs 54.5 expected. The deviation was 2.5 positive, thus taking speculative short positions on the wrong foot.
GBP/USD prints bullish engulfing candle
The GBP/USD daily chart show a sizeable bull engulfing bar, which has managed to wipe out the past 3 losing days. On this impulsive bull reversals, it is likely that traders tend to shift focus to become more friendly to dip-buying.
According to Valeria Bednarik, Chief Analyst at FXstreet.com, "Despite hourly indicators look exhausted in overbought territory, the fact that price holds suggest the upside remains favored." Steady gains above 1.5290 should favor an upward movement into 1.5370 as next target, Bednarik added.