GBP/USD: Cable is running on pure newsflow [Video]
|GBP/USD
It has been extremely difficult to consider a technical outlook for a market that is running on pure newsflow in recent days. Cable has been choppy, but intraday weakness has repeatedly been bought into as progress has been made this week. However, with a deal now achieved on an EU level, there may be little good news to prevent Cable slipping back today (the UK Parliament arithmetic does not look great for passing a deal on Saturday). For now the technicals (for what they are worth) remain positive. The hourly chart is intriguing too, with the market repeatedly supported by both a rising 55 hour moving average and a five day uptrend. The support of a higher low at $1.2750 will give an indication of where the market is at. Failure of this low would suggest the market is losing hope of securing a deal. The high of $1.2988 is resistance now, with a mini lower high at $1.2890. The volatile ride is not over yet and the biggest move (highly likely to be a significant gap) will be on Monday morning (Sunday night depending on where traders reside).
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