GBP/USD: increasing resistance around the key $1.3000 area [Video]
|GBP/USD
A solid negative candle has re-iterated what we now see as a likely trading range formation on Cable. The mild rally of last week has topped out at $1.2975 to bolster what is increasing resistance around the key $1.3000 area. This move back lower is now weighing on the near term outlook again. Momentum indicators are turning over, with the Stochastics threatening lower and MACD lines also having started to drift away. There is nothing overly bearish about these moves (yet) and we foresee this to be playing out as part of a drifting range consolidation between the $1.2785 support and $1.3010 high. The hourly chart reflects a slippage but more of a ranging momentum. Initial support at $1.2840 today, with resistance $1.2905/$1.2925.
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