The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
GBP/USD recovers some strength
We did just about get a lower low in cable yesterday, but it was only a modest push downwards. Now, the pair appears to have recovered some strength, even if PMI readings could provide a potential hiccup.
If the price does recover $1.40 then that would be a bullish development, coupled with a bullish crossover in stochastics on the daily chart. A turn higher in the daily RSI is also adding to the impression of a short-term bottom being in place. We would look towards $1.4080 and then $1.42 in the event of an extended move higher.