Cable looks to test the 50-DMA

In the absence of major economic news, we have seen GBP/USD drop back from the mid-February highs, but $1.66 seems to be holding for now.

The week has not been particularly busy for GBP/USD traders, with little important news. As a result, we’ve seen the currency drift lower, with the 50-day moving average looking under pressure.

The bias remains to the upside, but I would wait until Monday before recommencing any long positions. The Crimean referendum and associated political commentary will unnerve markets over the weekend, so it may take time for the dust to settle.

The currency pairing is still in its longer-term uptrend, with rising support just above $1.65. We may retest this level but the situation still looks supportive of a bounce, in which case $1.68 returns as a potential immediate target. 

Spot FX GBP/USD chart

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