We have
been monitoring the GBP/USD in anticipation of this possible bounce since the
pair started to consolidate around the 1.6800 level. We also mentioned that in
order to see the pair take a clear direction, we would need to see some strong
fundamentals that supported the move. Today we received those fundamentals
which showed that economic growth in the United States has stalled versus the
better than expected consumer confidence reading out of the United Kingdom.
This is what obviously caused the pair to rally and visit the so much
anticipated 1.6900 level.
From now
on, what we should do is monitor the pair and see how it keeps reacting to this
new zone. Let us keep in mind that the current levels for Cable are historic.
Therefore, we may see some profit taking or at least some kind of consolidation
around this zone.
Nice ride up!
ReplyDeleteIn Cable at the moment we are at uncharted waters!!
ReplyDeletethe market is pricing a rate increase in GBP sooner rather than later
ReplyDeleteI really want to short cable but the market is showing no signs of a decent pull back
ReplyDelete