GBP/USD: Cable turning into a consolidation range [Video]
|GBP/USD
There has been a mix of signals on Cable in recent sessions which have clouded the near term outlook. The huge rally from the mid-March low of $1.1405 found resistance at $1.2485 and has since been broadly drifting lower with a negative bias. However, yesterday’s bullish outside day was a good fightback from the bulls. This move needs to be followed by another positive session today otherwise the impetus of the move will be lost. Coming into the European session, a small range, doji candle suggests a lack of conviction. Looking at the hourly chart there is an argument now for Cable having formed a bigger trading range. Yesterday’s low at $1.2160 forming the support of a range of 325 pips, effectively with $1.2300/$1.2350 acting as a neutral, or perhaps pivot area to work from. Either side of this given either a positive (above $1.2350) or negative (below $1.2300) bias. But essentially, the hourly momentum configuration moderating suggests Cable turning into a consolidation range. With hourly moving averages all flattening within 40 pips around the neutral area, this is a settling market in need of a catalyst now. Accordingly we are near term neutral now. We turn bullish above $1.2485, or bearish below $1.2160.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.