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GBP/USD Waves Bullish Flag – Construction PMI Up Next

Before we proceed, let me draw your attention towards a small bearish channel setup on the hourly timeframe. The Cable is trading right below the upper trendline resistance level of $1.3100. This pattern is also called a bullish flag, and typically drives buying trend in the market. You can see a candlestick pattern ‘bearish marubozu’ which is the bearish pattern in nature.

Alongside, the RSI and Stochastics are coming out of an oversold area, implying the market is already at low and bullish may dominate the market for correction.
At 9:30 (GMT), the focus will remain on the UK construction PMI data. As per forecast, the construction PMI seems to show a slight drop from 52.8 to 52.6. Weaker data will add more selling pressure on the GBP/USD today.

Support Resistance
1.3043 1.3115
1.3007 1.3151
1.2935 1.3223
Key Trading Level: 1.3079

GBP/USD – Trading Plan

Investors are advised to keep a closer eye on a thin trading range of $1.3090. The idea is to stay bullish above $1.3090 and bearish below $1.3085 to target 50 pips on both sides.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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