Cable eyeing 1.4178 again

British Pound jumped ahead of UK data – manufacturing production as markets were expecting to print upbeat (since manufacturing PMI in Jan was at three-month high)

Following the data, Cable hardly managed to add pips, hence I believe it is heading lower on buy the rumor, sell the fact trade

Here is the GBP/USD hourly chart

GBPUSD H1 (03-09-2016 1719)

Hourly chart also showed bearish price-RSI divergence yesterday, which remains intact as long as 1.4284 resistance holds.

Given the pair hasn’t benefited much from the upbeat data release, it is likely that bearish price-RSI divergence would come back into play and push the spot lower to 1.4178 levels.

 

 

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