GBPUSD since beginning of July is moving quietly south. As a result of these declines market reached an extremely important support, which coincided with 50% Fibonacci correction from earlier gains, where a strong demand response has emerged after publication of May UK labor market report.
As we reported earlier,lower unemployment, coupled with positive change in jobless claims and labor dynamics, triggered a dynamic appreciation of pound.
Taking into account that cable on H4 chart developed a bullish pin-bar, in near future we can expect a permanent rejection of this support zone. Such market behavior could open the way to a rebound even in the vicinity of June’s high and thus over 170 pips from the current price.
