GBP/USD is still on an uptrend on the 1-hour time frame but it is currently stalling around the middle of the rising channel, suggesting that bulls are having trouble sustaining momentum. Today’s UK claimant count change report could determine the direction of this pair.
Another decline in claimants would be positive for the pair, possibly boosting it to the top of the channel around the1.5900 handle. On the other hand, a weak jobs figure might trigger a selloff to the bottom of the channel or might result to a break down.
A straddle setup on the current levels (1.5750) might work for this market event and a wide stop of 100-pips should be enough to weather the additional volatility.
By Kate Curtis from Trader’s Way