The GBPUSD completed its wave 4 formation from price 1.6591 to make a support at 1.6336 and then headed towards the upside to form a resistance at 1.6432 during yesterday’s US trading session; this was fueled by disappointing data released by the Service sector which shows that Ism Non Manufacturing PMI missed an improving expectation.
However a price rejection pattern emerged on 50EMA on the 1hour charts and 4 hour charts which shows indication that intraday bias remains on the downside. A break of support 1.6336 should see GBPUSD fall further to 1.6300 psychological zone and then price 1.6270 (weekly S2)
A fundamental reason which could bolster the southward movement is due to a disappointing data from the Manufacturing, construction and Service sector from the Great Britain economy. However a break of resistance 1.6432 could see further demand of the pair to 1.6472 ( last week Friday’s high and happens to be the week’s central pivot)