GBP/USD: Sterling bulls need to overcome resistance at 1.2980 [Video]
|GBP/USD
A more corrective outlook has formed on Cable over the past few weeks. During February there has been a shift in sentiment, where Cable is increasingly forming lower highs and lower lows. It is important to note that this is not an explicit negative outlook yet. A step back would suggest that whilst the support band $1.2765/$1.2820 remains intact there is no major cause for concern for the bulls. It is though a more gradual drift lower on a net basis now, causing a three week downtrend to form. The sterling bulls need to overcome resistance at $1.2980 initially to break the growing corrective momentum. Trading under the near to medium term moving averages, which are now all rolling over, adds to this growing sense of correction. Also with RSI struggling under 50 now for the past few weeks, and MACD lines under neutral, there is a negative bias to suggest strength is a chance to sell for a retest of $1.2845. There needs to be a move above $1.3070 to change the narrative to a more positive outlook now on Cable.
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