Richard Perry
Independent Analyst
GBP/USD
The bulls are being tested once more as Cable has dipped back into the support band $1.2900/$1.3000. So far in 2020, this has been an area where the buyers have tended to resume control and been happy to support. Although it was a US public holiday yesterday, a rebound off $1.2960 yesterday has pulled the market back above $1.3000 again. It is too early to suggest this is another important rebound from support, but there are signs of improvement again. The important move though would be to now break what is a growing near term downtrend of the past three weeks. The trendline comes in at $1.3090, so there is still a way to go in a recovery, but it is interesting that once more, with the RSI holding around 40/45 the market is being supported. However, we also need to keep an eye on MACD and Stochastics lines, which are deteriorating once more. Key support is $1.2900 (the late December low) and $1.2950 (the January low). The hourly chart shows a minor reversal pattern of improvement, but there is resistance $1.3025/$1.3060 that needs to be breached.
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