GBP/USD: renewed corrective move on Cable [Video]
|GBP/USD
As the Fed and the Bank of England are both set to announce monetary policy over the next 36 hours, there has been a renewed corrective move on Cable. Sterling woes seem to be a driver, but also dollar strength too. This has pulled Cable back towards the support band $1.2900/$1.3000 once more. However, this is a range where recent lows have been forming (with $1.2950/$1.2960 being lows of the past couple of weeks). Yesterday’s rebound off $1.2975 to close back above $1.3000 once more shows that there is still an appetite to defend the $1.2900/$1.3000 support band. However, there is still a negative bias that comes with four successive bearish candles in a row. Momentum indicators are sliding again (Stochastics especially). This downside momentum would really begin to ramp up on an initial break of $1.2950 and take on a whole new bearish tilt below $1.2900. This morning’s consolidation comes ahead of the Fed and may mean that we will have to wait for the two central banks for direction. Initial resistance $1.3040/$1.3065.
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