Richard Perry
Independent Analyst
GBP/USD
Elevated levels of intraday volatility are still a feature of Cable trading right now. Once more we saw a rally into 1.3000 failing to hold yesterday and Cable dropping back -75 pips into the close. It is indicative of the constant swing back and forth not only of USD expectations but also on GBP with uncertainty over Brexit trade deal developments. Cable is subsequently stuck in a sideways range. Support has developed at 1.2845 but the rallies have faltered between 1.3000/1.3080 repeatedly over the past six weeks. Trading within a clutch of neutral moving averages, we also see RSI and MACD momentum indicators almost dead neutral. It looks that is will be a newsflow driven breakout for Cable, so we watch US fiscal stimulus and Brexit trade deal developments again.
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