GBP/USD: The reaction in the 1.3000/1.3080 band is now the focus [Video]
|GBP/USD
A big breakout on Cable has spent the past few sessions being dragged back again. The reaction in the 1.3000/1.3080 band is now the focus. For now, with Brexit trade deal newsflow limited by the “tunnel” negotiations, Cable is all about the dollar moves. A near term dollar rebound (on broad market risk aversion) has dragged Cable back to 1.3000 again. There is an argument to say that Cable is now rising within a four week uptrend channel, and that this pullback to 1.3000 is a chance to buy. As the near term slide begins to settle this morning, and given the mild positive bias to momentum still, this is our preferred strategy. Channel uptrend support comes in around 1.2950 today. A move back above 1.3080 would be a positive signal now for a renewed run higher to retest last week’s high of 1.3175. Breaking the channel uptrend would neutralise the outlook. Below 1.2860 is near/medium term corrective again.
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