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.