Richard Perry
Independent Analyst
GBP/USD
The recovery on Cable continues. Since the market bounced off $1.2160 last week, there have now been six positive closes in the past seven sessions. Moving decisively clear of the mid-range resistance $1.2360/$1.2465 the market is on the way towards a test of the range highs again at $1.2645. This is an incredible turnaround considering less than two weeks ago Cable was looking at the prospect of $1.20 big figure. Such has been the momentum of this rally we are now looking at strong RSI and Stochastics. The 14 day RSI is into the mid-60s now and is at its strongest since December. It is all set up for a test of the key April highs of $1.2645 now. We are still mindful of the consistent swing tendencies of Cable, where the previous two and a half week sell-off has been followed by a rally now two and a half weeks old. Subsequently, whilst $1.2645 is a target to be eyed, we watch for warning signs of exhaustion on the hourly chart. The rising 21 hour moving average has supported the run throughout the past few sessions. The hourly RSI has been above 40 for the past week. Breaking these conditions would be a warning. The hourly MACD and Stochastics lines are just beginning to threaten negative divergences too. Given the history of Cable ranging within $1.2075/$1.2645 it might be wise to take caution on long positions around these levels.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD stays below 1.1100 after mixed US data
EUR/USD remains under bearish pressure and trades below 1.1100 on Tuesday. The data from the US showed that job openings rose more than expected in August. The disappointing ISM Manufacturing PMI reading, however, makes it difficult for the USD to gather strength.
GBP/USD struggles to rebound, trades near 1.3300
GBP/USD continues to trade deep in negative territory at around 1.3300 in the American session on Tuesday. The mixed macroeconomic data releases from the US limit the USD's rebound, helping the pair hold its ground.
Gold recovers above $2,660 on escalating geopolitical tensions
Gold gathers recovery momentum and trades above $2,660 on Tuesday. Escalating geopolitical tensions on reports of the Israeli army mounting a ground invasion of Lebanon help XAU/USD push higher despite the renewed US Dollar strength.
Gillian Lynch, head of EU at Gemini: “The next phase of crypto growth will be exponential”
Gillian Lynch is the Head of Ireland and EU at Gemini, the US crypto exchange founded by Cameron and Tyler Winklevoss. FXStreet interviewed her during the European Blockchain Convention 2024 in Barcelona, where Lynch expressed her optimism about the crypto industry.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.