looks like the ISM report hasnt done much besides generate a nice spike to the 9135 level and retrace back down... expected resistance at that level this the previous high off the daily chart from the aug 7th high around 9145..
on the lower time frames price formed a nice rejection hammer of the 9135 level... still theres a cluster of support around the 9050 to 9080 zone... this will possibly act as luanching pad for the next high retest or possibly give way and open lower levels...
NFP should provide more volitility and directional bias, but GBP is overbought and macd is diverging heavily on 1hr and 4hr. Prefer buying dips at this point until support is broken below 9050 convincingly.
not seeing a real collapse here so im currently flat, might wait till NFP comes out to step back in.
This quote may just ring true time will tell, from dailyfx.com
"However, gains for the GBP/USD pair may be limited as the possibility of 5.00 percent rates in the <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" /><st1:country-region w:st="on"><st1lace w:st="on">UK</st1lace></st1:country-region> should be priced in already, as Cable has rallied more than 500 points over the course of the past three weeks. Should the BOE decide to wait until December to pursue policy tightening, the <st1:country-region w:st="on"><st1lace w:st="on">UK</st1lace></st1:country-region> currency could be in for very sharp declines."