Over the past couple of weeks, sterling has been the worst performing major currency by some way. Although there was a degree of kick back against this yesterday, we expect this underperformance to continue. Subsequently, today is an important session for the continuation of the near term corrective outlook on Cable. A strong positive candle posted yesterday was counter to a three week downtrend and gives another chance to sell. This trendline sits at $1.2405 today as the early move has dropped back again. However, if the bulls can rally again and post another positive candle, then it would break the three week downtrend and suggest the market is ready to pull higher once more.
GBP/USD Price Analysis: Cable has pushed aggressively higher but is very close to an important resistance zone
GBP/USD has been one of the outperformers on Thursday and rocketed higher against the greenback throughout the session. As the risk sentiment improves so does the pound, as it cements itself as one of the key risk linked FX majors.
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