Lack of fresh perspective has kept Cable within recent ranges though fundamentals for the UK remains unchanged. While market was disappointed with the FOMC’s failure to signal a last rate hike Wednesday leading to GBPUSD’s bounce the concern in the UK is for the BoE to be ahead of the curve in cutting rates. While still above target UK inflation has been easing and as such a major contributor to the currencies weakness. Strong US jobs results ahead may be the excuse we need to get a rejection from the bearish trend line and push past the weeks lows.
- 1.25963/6117 – 50 Fib Retracement / 50D Moving Average
- 1.25671 – Bearish Trend Line from March 08
- 1.25445 – Thursday’s High
Support
- 1.24995 – Intraday Consolidation Resistance
- 1.24713 – Thursday Low
- 1.24491 – Intraday Consolidation Low
GBPUSD is well resisted with daily consolidation highs and a bearish trend just above market prices. Note a combination of proximity to resistances and an over bought chart typically signals watch out for bears. Typical for us, consider selling if presented with long wicks from the resistances. Buy’s can be considered if pushing past the daily bearish trend line provided we have a fundamental excuse to do so, i.e. new variable needs to be priced in.
