Richard Perry
Independent Analyst
GBP/USD
Once more the Cable rally has tailed off around the $1.2975/$1.3010 resistance of the past few weeks and the range formation is kicking in again. We continue to see GBP/USD as a growing near to medium term consolidation pattern between probably $1.2700/$1.3000 in the run up to the UK election and with yesterday’s negative candle we see this as an increasing likelihood. With momentum indicators still in their retracement modes, another unwinding move looks to be on. Back below initial support at $1.2900 opens $1.2865 and then $1.2820. Having lost the positive traction, hourly indicators are taking a more neutral configuration. Watch for hourly RSI moving below 30 for a build up of corrective momentum. Initial resistance now $1.2930.
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