The bulls managed to break through 1.6450-1.6480 (50% - 61.8% Fibonacci levels and the upper limit of the ongoing channel). This invalidated our short-term bearish scenario.
Fundamentally, the Sterling Pound rose quickly after showing a sharp decline in the unemployment rate. This enhanced the image on the economic recovery of the UK.
The unemployment rate has declined to 7.1% in the three months that ended in October, compared with the precedingthree months in which the reading was 7.4%.
Technically, the GBP/USD has two important levels, one to the downside located near 1.6480 acting as DEMAND level and the other one to the upside located near 1.6590 acting as SUPPLY level.
Visiting 1.6590-1.6600 has become so close especially after the positive fundamental data released today. Moreover, the short-term view turned to be positive with a suggested BUY entry at retesting of DEMAND zone at 1.6480-1.6450.
