Reason for the trading strategy (technically):
Price is testing major resistance at 1.2531 ( , , horizontal overlap resistance, descending resistance) and we expect to see a reaction from this level for a further drop to at least 1.2378 support ( , horizontal swing low support).
(34,5,3) is seeing strong resistance below the 94% level where we hope to see a reaction from when reaches that level.
Reason for the trading strategy (fundamentally):
The main news event driving USD today is the U.S. ISM Manufacturing survey. It is one of the biggest market moving economic releases because of its Prices Paid and Employment subcomponents which reflect sentiment towards and labor conditions - two of the market's most significant health indicators. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD. We’re expecting forecasts of a decrease which means a USD is expected, this goes against our GBPUSD view, hence it is best to exercise caution on this trade.