GBP/USD: Can this recovery be trusted? [Video]
|GBP/USD
We have been seeing more fight from the Cable bulls recently, however on a renewed swing back to the dollar during US trading yesterday, a decisive negative candle formed to once more damage the prospects of a recovery. Losing over -100 pips from the day high yesterday will have been a disappointment, and seriously questions whether this is a recovery that can be trusted. Were the bulls to have been in control they would have been looking to find a higher low within the support band $1.2245/$1.2295, but this move seems to have failed before it has even seriously got going. The hourly chart shows a shallow uptrend of the past week and a half that certainly needs to hold (comes in today at $1.2200), but it is interesting that an intraday rebound into the close blast night is testing $1.2245 again. This will be an initial gauge today, otherwise the failing of the rally will begin to pressure the newly laid support at $1.2160 again. Momentum indicators are struggling to sustain the traction of their initial recovery positions and the bulls need to begin to form some positive daily candles again. Otherwise, once more we can add $1.2360 resistance to a list of failed bull moves.
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