FxWirePro: GBP/USD hammer energizes bulls; is it enough to get back on trend line?

Bulls in charge,

• As anticipated yesterday, the GBP/USD exchange rate tested the rising trend line that has been in place since last two weeks, provided support to the pound bulls around 1.32 area last week, got broken under selling pressure.

• We warned readers that the exchange rate is very likely to test the 1.32 support area, and the break of this trend line opens the possibility of a decline towards 1.3 area. We also warned our FxWirePro readers to expect heavy buying around 1.32 area.

As anticipated, the exchange rate found support after declining around 1.318 and formed a bullish hammer candle, which put the bulls in charge.

• The price has naturally moved higher after the hammer but is it sufficient enough to put GBP/USD back on the rising trend line.

The upcoming UK unemployment report, which will be released at 9:30 GMT, is likely to provide the next cue.