Cable’s half-hearted rejection of the 200-day moving average

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GBP/USD is higher for the second day after closing below the 200-day moving average on Wednesday.

The market is watching the European high of 1.5894. There are also offers at 1.5900 and an option expiry at that lelve at 1500 GMT.

The bigger picture is uninspiring.

The current two-day rally comes after essentially 9 days of selling. If cable had any residual strength, I would have expected a better bounce. That said, there is still time, but the key resistance range is 1.5913 to 1.5940. An inability to break higher leave cable firmly in the ‘sell’ category.

Author: Adam Button

Adam Button is the managing editor of ForexLiveâ„¢. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.

3 Comments

  1. Adam with the current ME tensions how will it affect the $.thanx

  2. There are so jitters and that’s always going to help the US dollar, to some extent. But overall, unless it spills into Egypt or another country, I don’t see it as a driver going forward. We’ve seen this all before.

  3. sorry adam, we havent seen such things in the middle east like all the “springs” and muslimbrotherhood building up like an avalanche too many players

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