Cable touched the lowest levels of the week at 1.6738 in Asian trading but turned around on UK jobs data and busted stops above 1.6800 in US trading. The momentum continued to 1.6811 but stalled ahead of yesterday’s high of 1.6808.

Offers lurk at yesterday’s high upto the trendline at 1.6825. Stronger sellers at 1.6840/45 with others at 1.6860.

GBPUSD daily chart

GBPUSD daily

For me, the growing undercurrent in markets is US dollar strength as the bond market retraces and economic data improves. The wage inflation data from the UK was soft today so I like the downside in cable and today’s bounce is a good spot to sell.