GBP/USD: a decisive move through $1.3095 would open the recovery for further upside [Video]
|GBP/USD
We have been talking up the positive prospects of Cable being supported around $1.2900/$1.3000 over recent weeks. This continues to build as the market has now formed three consecutive positive closes and looks today to be breaching a mini two week downtrend. Momentum indicators are picking up around their medium term buying opportunity levels (around 40 on RSI, around neutral on MACD and Stochastics swinging higher a shade above 20). The hourly chart shows the building recovery well, with a move now decisively above $1.3050 which has been a near term pivot level. The hourly RSI is also consistently in positive configuration (above 40, whilst pushing 70) in recent sessions and hourly MACD lines are above neutral. This points to buying into weakness. An initial support band is building $1.3025/$1.3050, with $1.2985 being a higher low above $1.2950 now. A decisive move through $1.3095 today would open the recovery for further upside today. Above $1.3130 opens the key reaction high of $1.3210.
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