GBP/USD: Bulls need a closing breakout above 1.3050 to regain control [Video]
|GBP/USD
The Cable rally has just begun to stall in the wake of the FOMC decision. Technically, we have been talking about the importance of the resistance band 1.2980/1.3050 and with the market turning back from yesterday’s high of 1.3005, this just adds further weight to its importance. Falling over this morning leaves the market stuck under this resistance band. However, it has also been a good response in recent sessions and yesterday’s rebound has broken a two week downtrend. It means that trend lines (both positive and negative) are being broken all over the place. The outlook for Cable is subsequently fairly uncertain. The bulls need a closing breakout above 1.3050 to regain control, whilst selling pressure needs to break back below 1.2760 to really suggest a continued correction. The hourly chart shows initial support at 1.2875 needs to hold for the near term improvement to sustain for pressure on the 1.2980/1.3050 resistance area.
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