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 continues to bounce
Cable has spent the past five days bouncing around $1.57, showing no real desire to move below this key level. This has stalled the pullback that begun when the pair failed to take out $1.59; the longer we continue to hold above $1.57, the more I am inclined to the view we will see a continuation of the upward trend that has prevailed since mid-April.
So far, cable has shown little inclination to move above $1.58 either, so this is the upside level to watch for the time being. Once we break this upside level (if we do), the targets to watch will be $1.59 and then $1.6050. A dip below $1.57 would still mean we are on course to retest the rising trendline off the previously-mentioned April lows, around $1.5550.
The hourly-chart has seen another bounce off $1.57, so the intraday target lies around the 200-hour simple moving average ($1.5780), which also coincides nicely with yesterday’s highs.