GBP/USD: Cable suffering amid strengthening dollar and election uncertainty [Video]
|GBP/USD
Cable suffered on Friday amid a strengthening dollar and election uncertainty for sterling. A strong negative candle saw another retreat back to the 23.6% Fib level (of the October rally $1.2193/$1.3012) at $1.2820. There is a good band of support around $1.2760/$1.2820 over recent weeks and the market continues to play out what we see as an ongoing range in front of the UK election (on 12th December). Unless there is a material shift in the election prospects we do not expect Cable to trade decisively outside this range. Momentum indicators continue to moderate and it is notable that Cable has again steadied itself this morning. The hourly chart shows a slight negative bias has developed in the wake of Friday’s decline, but not enough yet to drive significant direction. There is resistance $1.2885/$1.2900 to contend with initially.
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