GBP/USD: Imminent break above $1.2540? [Video]

Richard Perry Independent Analyst

GBP/USD

In a session where the US dollar came under broad pressure, Cable managed to add less than +10 pips with a small bodied (“spinning top”) candlestick. The resistance between $1.2530/$1.2540 remains a key near term barrier. A fourth small bodied, candle in a row suggests that the market is lacking conviction under this resistance. Although the price is still edging with a slight positive bias, momentum indicators reflect a growing consolidation, with RSI stuck in the low 50s and MACD lines flattening at zero. The hourly chart shows indicators settling down in the last couple of sessions, although a mild bias towards buying into weakness will sustain whilst the support between $1.2435/$1.2450 holds. There is little real indication that there is about to be an imminent break above $1.2540 but this would be a near term game changer, opening $1.2685 as next resistance and the highs of the medium term trading band once more.

Author

Richard Perry

Independent Analyst

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