There isn’t much in terms of data in today’s economic schedule, but there could be an opportunity for a quick scalp trade for GBP/USD. The UK is set to print its CBI realized sales report at 12:00 pm GMT today and possibly spark some volatility for the pair.
GBP/USD is currently trading inside a rising channel on its 1-hour time frame but it is testing the bottom. A break below this level, which might be sparked by a weak CBI figure, could take the pair to the next visible support at 1.5925. A bounce from the current levels could push GBP/USD to the top of the channel around 1.6275.
The rally is projected to be weaker than the possible selloff because sentiment for the UK is bearish lately. Risk appetite is also low, thanks to the downbeat sentiment spurred by China’s rising interest rates.
By Kate Curtis from Trader’s Way