GBP/USD: fluctuations on sterling around UK political developments [Video]
|GBP/USD
In the coming month before the UK General Election on 12th December there will be fluctuations on sterling around UK political developments. Yesterday’s sharp move higher was just that. With the absence of US bond markets, sterling was given free rein to jump higher. This has put the Cable bulls back on the front foot on a near term basis, but taking a step back, simply reiterates what is more likely to be the gyrations of the coming weeks. Technically, a swing higher on Stochastics is a positive signal near term, whilst RSI is holding above 50 and MACD lines are beginning to steady above neutral. Initial resistance at $1.2900 around yesterday’s high, with the hourly chart showing initial support $1.2835/$1.2845. We favour a mild corrective drift on Cable for the coming weeks, whilst the strong technical of the October rally unwind, but there are still bumps in the road ahead.
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