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.