GBP/USD: Volatility is building up [Video]
|GBP/USD
With the dollar strength looking less secure in the past couple of sessions, and Brexit positivity pulling sterling higher, we saw a Cable rally yesterday. However, even though there was a +80 pip rebound on the day, this also included a questionable bull failure which pulled the market -100 pips off the day high into the close. It seems that volatility is building up, which needs to be considered when positioning. The technical show that yesterday’s move has potentially turned a corner, but a close above 1.2860 is needed to confirm an improvement. This would then open 1.3000. Momentum indicators have improved, but again, look to be at a crossroads, where RSI and Stochastics are again around levels where the last rally failed in mid-September. This outlook essentially plays into our medium term medium/uncertain position between 1.2650/1.3000. The hourly chart reflects the near term pick up which needs to now hold above 1.2825 to be sustained.
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