GBP/USD- Bounced from its Support as Predicted- What Now?

Strategy in Play:

The GBP/USD bounced from its support on a 30 minute time frame as predicted. This support zone was given in our analysis on the 23rd of October. The price is trading in a upward channel and it has not broken this channel so far which means that the bias could be to the upside. However, a break of this channel could increase the selling pressure for the pair as it is trading below the 50 day (shown in green) and near the 100 day (shown in yellow) moving average which confirms that the bulls are struggling.  

Chinese manufacturing data pushed the European markets & US Futures higher: while major economic data is in focus

 

The European markets and US futures are trading higher this morning on the back of the optimism that Chinese economic growth is improving. The data released during the Asian training session showed that the Chinese HSBC manufacturing PMI for October came in at a much better level than expected and also it polished the seven month high. The final reading was 50.9 while the forecast was 50.5, which is pushing the global market higher.

Having said that, the European markets will have their challenges as the ECB is planning to undertake risk assessment on major Eurozone’s bank during the coming year. Although, these tests have been due for a long time, but the question which is imperative for us is the credibility of the ECB bank, given that the bank has already done two worthless stress test in the recent years.