PapiaKhatunAsha
Member
The GBP/USD pair continues to consolidate. Price action has been positive so far this week, but more evidence is needed to suggest that rates have bottomed out. A break above the bearish trend line is a prerequisite for negotiations to bottom out.
At some point over the next few days, the cable would also need to see a break above the key resistance zone in the 1.23 area for it to form a higher high. Until then, it's important not to jump to conclusions, especially in light of the key US jobs report due out on Friday.
The major short-term support currently lies at 1.2170, the base of today's breakout. Bulls will want to keep the GBP/USD pair above this level if they want to avoid further declines towards 1.20.
At some point over the next few days, the cable would also need to see a break above the key resistance zone in the 1.23 area for it to form a higher high. Until then, it's important not to jump to conclusions, especially in light of the key US jobs report due out on Friday.
The major short-term support currently lies at 1.2170, the base of today's breakout. Bulls will want to keep the GBP/USD pair above this level if they want to avoid further declines towards 1.20.