GBP/USD: The outlook for Cable is looking uncertain
The outlook for Cable has become rather uncertain in the past couple of weeks. Breaking down below 1.3000 lost the bulls their control. However, the support subsequently formed at 1.2670 suggested that there was no decisive drive to turn Cable bearish yet though. As the market has fluctuated between 1.2670/1.3000 we see a neutralised outlook. Failure to hold back above 1.2860 in the last two sessions leaves the market in balance. Improving momentum signals are just beginning to tail off again as Cable has ticked lower today.
GBP/USD climbs above 1.2900 on renewed USD weakness
A fresh USD selloff seems to be fueling the pair's rally. In the absence of significant fundamental drivers, the sharp drop witnessed in the US Dollar Index (DXY) suggests that month-end flows are weighing on the greenback. At the moment, the DXY is flat on the day at 93.89.
Earlier in the day, the data from the US showed that employment in the private sector rose by 749,000 in September and the economic activity in the second quarter contracted by 31.4%. Both of these figures came in better than analysts' estimates and helped market sentiment turn positive.
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