The GBP-USD rate earlier breached the -2 standard deviation and has since moved back up towards the mean over the past 100 periods. the chart shows that price has returned back above the -1 standard deviation in the last hour. Long positions should be taken, as the rate will be expected to return to the middle regression line and possibly extending to the +1 standard deviation at 1.6390-1.6400.
The markit services PMI and composite PMI are expected in the next hour for the US and both are expected to decline from last month's reading, which will help to extend the gains made by the GBP-USD. A lower than expected reading could see the rate tend towards the +1 standard deviation and to the Fibonacci resistance level at 1.6392.
The markit services PMI and composite PMI are expected in the next hour for the US and both are expected to decline from last month's reading, which will help to extend the gains made by the GBP-USD. A lower than expected reading could see the rate tend towards the +1 standard deviation and to the Fibonacci resistance level at 1.6392.