GBP/USD: The selling pressure is fairly thin [Video]
|GBP/USD
As has been the case on several occasions in recent weeks and months, the rally on Cable has rolled over and begun to retrace. The bulls will though note that the selling pressure is fairly thin right now and the negative candlesticks are small-bodied. Although momentum indicators have rolled over at their neutral points (RSI) or just below (MACD and Stochastics) which lends a near term negative bias, there is little real driving force behind the move. Resistance at $1.3070 was bolstered by yesterday’s $1.3050 lower high, however, the hourly chart shows support of the pivot band $1.2940/$1.2960 which is holding firm. The hourly momentum indicators are in ranging formation with hourly RSI oscillating between 30/70 which suggests that there is little traction either way right now. We are neutral medium term on Cable and increasingly neutral near term too.
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