Since the beginning of the year the GBPUSD pair has been moving in a very unpredictable, even chaotic way. Last Friday we learned PMI data for the UK industry, which turned out to be better than expected. Initially, the pound fired up, but after reaching 1,3170 the supply entered the market and the price went below the day opening and Friday’s daily candle formed a bearish engulfing pattern.
Today we watched an attempt to recover the last drops, the price went up to half of the pattern, but the day ended a few pips below the minimum of the ‘mother’ candle that formed the pattern.
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The upcoming sessions for this pair are interesting, on Thursday we will be waiting for the Bank of England’s decision on interest rates, and on Friday the UK leaves the European Union.
Undoubtedly these two events will have an impact on the GBPUSD rate.
Looking at the chart from a technical point of view… overcoming the lower limit of the formation should result in drops towards the nearest S/R level – 1.2970.
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