GBP/USD: Cable up against the renewed safe haven flows of the Dollar [Video]
|GBP/USD
Whilst the euro struggles, there is an interesting strength to sterling. This is helping to hold Cable up against the renewed safe haven flows of the dollar. Cable has built a consolidation in the past few sessions. Whilst the rally has found resistance at $1.2485, it is interesting that support has built around the 50% Fibonacci retracement (of the $1.3200/$1.1405 sell-off) at $1.2300. The RSI is hovering bang on its neutral point now, but there is still a positive bias though the continued recovery on Stochastics and MACD. The hourly chart shows this as a trading range between $1.2250/$1.2485 for the past four sessions, which considering the Average True Range is still over 300 pips (c. 307 pips this morning) suggests a remarkable calming of the market volatility. Hourly RSI is now ranging between 40/65, whilst hourly MACD lines are dead flat at neutral. We still wait for a decisive breach of either support at $1.2300 or resistance at $1.2485. We trade an implied target of +/- 185 pips in the direction of the break.
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