GBP/USD - Cable Fresh Two-Year Highs As USD Ranges
It's been a rather clean topside move in GBP/USD since last week's test at the 1.3000 level, with the pair gaining as much as 338 pips from those lows.
There has been some help on the fundamental side, of course, with the Fed cutting by 50 bps and the BoE holding steady.
But, from a price action perspective I think this pair is still a more attractive venue for scenarios of USD-weakness when compared to EUR/USD.
The challenge now is to try to avoid chasing the move. There was a clean grind at support around the 1.3150 level so bulls would need to hold the lows above that to keep the door open for continuation, with expectation of additional higher-highs.
There's a couple spots of interest for such: The 1.3267 level was the prior two-year-high and naturally that's a spot that aggressive bullish strategies would remain attractive. But, from the daily there's another spot 50 pips lower that could function in a similar manner. This was the high on Monday, Tuesday and Wednesday of this week and, as yet, hasn't seen a support test. This remains of interest into next week's trade. - js
There has been some help on the fundamental side, of course, with the Fed cutting by 50 bps and the BoE holding steady.
But, from a price action perspective I think this pair is still a more attractive venue for scenarios of USD-weakness when compared to EUR/USD.
The challenge now is to try to avoid chasing the move. There was a clean grind at support around the 1.3150 level so bulls would need to hold the lows above that to keep the door open for continuation, with expectation of additional higher-highs.
There's a couple spots of interest for such: The 1.3267 level was the prior two-year-high and naturally that's a spot that aggressive bullish strategies would remain attractive. But, from the daily there's another spot 50 pips lower that could function in a similar manner. This was the high on Monday, Tuesday and Wednesday of this week and, as yet, hasn't seen a support test. This remains of interest into next week's trade. - js
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