GBP/USD – On the rise after inverted bullish hammer formation

GBP/USD is on the front foot in Asia following Monday’s inverted bullish hammer formation.

Stalls near 23.6% Fibo

The bullish move cooled as the prices neared 1.3054 (23.6% of Friday’s drop). Price hit a session high of 1.3047 before deflating slightly to 1.3040 levels.

On a slightly larger scheme of things, Friday’s drop could have a run out of steam as indicated by the bullish inverted hammer formation. The data docket is thin in Europe, while in the US the spot could take cues from the US housing data releases.

GBP/USD Technical Levels

A break above the immediate hurdle of 1.3054 (23.6% of Friday’s drop) would open doors for 1.3098 (23.6% of 1.3445-1.2994). Further gains could run into resistance at 1.3107 (5-DMA). On the other hand, a breakdown of support at 1.3027 could yield 1.30 (zero figure) and 1.2956 (Aug 9 low).