Yesterday market was closed in London and New York and historically when both market is close volatility is reduced with thin liquidity.
As expected GBP/USD find support at 50% (1.4432) retracement of swing high and low of previous week. From early Asian session, cable inched upward toward a resistance level of 61.8 % (1.4542) retracement of previous day’s high and low. Price hugged the 61.8% retracement level at the end of yesterday session with a hanging man candle formed at the last hour signaling a change of trend. For the whole yesterday session cable could only mustered a move for a range of 120 pips only.
With a uptrend sentiment still intact today, a reaction downard is expected with support at 1.4476. On the upside resistance is at 1.4591.
