GBP/USD: cable has dipped into the medium term support band $1.2900/$1.3000 [Video]

GBP/USD

Once more weakness has been bought into as Cable has dipped into the medium term support band $1.2900/$1.3000. A bullish engulfing candlestick formed yesterday as the Bank of England opted not to cut rates. This move has re-affirmed the triangle of converging trendlines and turned a slight corrective bias into a slight positive one again. The top of the triangle comes in around $1.3140 today and is now being eyed. However, until there is a closing breach of $1.3170 resistance this near to medium term phase of consolidation will continue.  An early consolidation of today’s Asian session has been met with buying pressure as the Europeans have taken over and there is a more positive outlook beginning to take hold. This is pulling Stochastics higher and the bulls will be looking for moves above 60 on both RSI and Stochastics to suggest upside traction is forming. The hourly char is looking more positive now and holding a break above $1.3110 would, keep a test of $1.3170 open. Initial support is now at $1.3080 and a break back below this would see a retreat back towards $1.3000 again.