Analysis

GBP/USD: a downside break would need a material tightening of the polls [Video]

GBP/USD

As another corrective drift has taken hold of the near term outlook on Cable once more, the consolidation range continues to progress. In front of the UK election (on 12th December) we see little real reason for the range between $1.2765/$1.3010 to be broken. A downside break would need a material tightening of the polls, but in a campaign so steeped with drudgery for both main parties, it is difficult to see much changing right now. The 23.6% Fibonacci retracement (of $1.2193/$1.3012) at $1.2820 has acted like a magnet for the price in recent weeks and  remains a key gauge. Momentum indicators are on an unwinding drift. Initial resistance is now at Monday’s high of $1.2910 as the oscillations on the hourly chart momentum indicators point to a drift to $1.2820 but without any real conviction for much else.

 

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