It looks like Lloyds were bang on with their analysis on Monday, where they said that there’s upside potential for cable.
We’ve gone up in stages with the last two rallies finding good support and buyers are happy to sit in positions and soak up any pressure from sellers.
GBP/USD h4 chart 22 01 2014
With fairly limited action going on elsewhere the pound has given traders something to get their teeth into. 1.66 remains the near term target but 1.6617 could be the bigger hurdle as it contains the August 2011 highs. Weekly resistance is also seen at 1.6611.
GBP/USD weekly chart 22 01 2014
There’s virtually nothing of note on the US calendar, so barring headlines the’re no real reason to see this rally falter from the dollar side. Should we slide back though then look to 1.6490/6500 as the first levels of support then 1.6450.
The pound bugs are loading up again and we’re looking fairly strong. The UK has started the year on the right foot so far and the slips in the data towards the end of last year have been washed out of the price. Onwards and upwards for Her Majesty’s pound.
