GBP/USD: New high for the year – Intraday weakness as a chance to buy [Video]
|GBP/USD
Breakout on Cable! The market has been edging higher in recent sessions, but the bulls really took off yesterday, forming an impressively strong positive candle in a session that closed around +130 pips higher. Not only has Cable broken through the near term resistance at 1.3385, but closed above 1.3200 in a move to clear the March resistance and take the market to a new high for the year. The inference of the breakout from a consolidation rectangle is +205 pips in the coming weeks, implying 1.3390 as a target. Momentum indicators reflect an increasingly strong outlook, with RSI is into the 70s, whilst Stochastics are bullish and MACD lines are threatening to move higher. It all points towards using intraday weakness as a chance to buy now. The old 1.3185/1.3200 resistance area is now supportive and an opportunity. The hourly chart shows stretched momentum but any unwind towards 50 on hourly RSI tends to be around where the bulls are re-ignited. Below 1.3130 would now be a disappointment. Beyond 1.3285 the resistance is the 1.3515 December high.
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