GBPUSD: The market took off from 1.3145 to 1.3406

GBPUSD 15/09/17

Well yesterday sure was Reversal Thursday….and the market took off from 1.3145 to 1.3406...we knew 1.3340 would be the break point and it was...we are still showing overbought on the daily charts...but the near 200 pt rally yesterday and the sustained hold above 1.3340 is making a decline less likely before we hit the 1.35 area…

There is also the cross rates to consider and these are correcting healthily now with Eur/Gbp below 89.00...which is good as parity loomed 2 weeks ago...but the outright Cable is looking ok now especially as throughout all this the last few weeks we have not been overbought at all on the indicators...and weekly charts still point higher...Now as 1.35 has been a target ever since the 1.3135 break I do believe that we are in a good position to make a go for these higher levels...and I think it will be quite quick…

Now when we get to 1.35 there will be a lot of profit taking...so we must bear this in mind….but the trend this year has been up for Cable.. and the way it held the previous target of 1.3135 yesterday did show underlying strength remains for it and although we may well have dips, unless this trend changes there is a good chance that we can reach 1.3850/1.39 before the year end….

Downside should hold 1.33/1.3280 now and we would be buyers on weakness to here...