GBP/USD - 1.2047.. Although cable swung sideways in Asia, price rallied on short covering in sterling following news of UK PM's resignation, price rose to 1.2024 b4 retreating to 1.1949 in NY but later hit session highs of 1.2030.

On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven usd's demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month 1.4241 peak in Feb suggests a major low is made. Having said that, cable's erratic fall to 1.2162 in Dec 2021 n then continued decline this year to a 2-year bottom at 1.1934 in mid-Jun n Tue's break there suggests correction fm 1.1412 is over n may head to 1.1800, 'bullish convergences' on daily indicators should keep price abv 1.1682. Only abv 1.2189 risks stronger gain twd 1.2332.

Today, as Wed's low at 1.1877 was also accompanied with bullish convergences on hourly indicators, Thur's rally to 1.2024 in Europe n then intra-day break of 1.2030 would bring range trading, o/bot readings on hourly oscillators would cap price below 1.2085. Below 1.1949 (NY low) would head back twd 1.1910.

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AceTrader Team

AceTrader

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