The Cable Turns at the Channel: A decisive moment for GBPUSD
There has been a 12 month uptrend in the GBPUSD. Fundamental analysis suggests strong Sterling recovery against the backdrop of a resilient service-sector biased economy.
Since September 2013 the rise has been constrained in a relatively firm channel. That said, July has been a month of cascading prices. Many attribute this to a number of negative reports. Commentators (see the related idea) have also indicated a belief that the Cable has breached a support level which will see it plummet further still, perhaps signalling a reversal.
Given the recent rise at the channel mark the pair is at a decisive point. Will it breach the potential short-term resistance level? the last few hours suggest so. I am relatively confident we will see the Long game pay out in the coming week, especially given recent negative news events focusing on the Dollar.
Since September 2013 the rise has been constrained in a relatively firm channel. That said, July has been a month of cascading prices. Many attribute this to a number of negative reports. Commentators (see the related idea) have also indicated a belief that the Cable has breached a support level which will see it plummet further still, perhaps signalling a reversal.
Given the recent rise at the channel mark the pair is at a decisive point. Will it breach the potential short-term resistance level? the last few hours suggest so. I am relatively confident we will see the Long game pay out in the coming week, especially given recent negative news events focusing on the Dollar.
