GBP/USD - squeeze continues with increased risk of bullish break
Hourly chart formation - Pennant intact
Cable continues to get squeezed in the pennant formation seen on the hourly chart. However, recovery from sub 1.44 levels (as seen in last two trading days) post weak UK manufacturing data indicates increased odds of an upside break. The safest bet is to wait for an hourly closing above pennant resistance, in which case, a sharp squeeze higher to 1.45 levels can be expected.
On the lower side, 1.4374 is a strong support, which if breached shall create room for a drop to 1.1.4330 levels.
Cable continues to get squeezed in the pennant formation seen on the hourly chart. However, recovery from sub 1.44 levels (as seen in last two trading days) post weak UK manufacturing data indicates increased odds of an upside break. The safest bet is to wait for an hourly closing above pennant resistance, in which case, a sharp squeeze higher to 1.45 levels can be expected.
On the lower side, 1.4374 is a strong support, which if breached shall create room for a drop to 1.1.4330 levels.
