GBP/USD Rally From Support - Fresh Two-Year Highs
It's been a fast move in GBP/USD since the 1.3000 test last Wednesday.
I looked at the pair again earlier this week after it had rallied up to a trendline produced by August and hat was at the time, September swing highs. At that point, I shifted the focus to support at the 1.3143-1.3161 area, which held and led into a bounce at the outset of yesterday's FOMC rate decision.
That led to yet another pullback to that support zone, which again held the lows into this morning's BoE and that brought another fresh two-year-high into the mix.
At this point the pair is difficult to chase, especially given the extended wicks above the 1.3267 high. Bulls have had a couple of different chances to drive through that but, so far, have failed.
With that said this is also a tough pair to fade at the moment given that recent strength along with the fact that the BoE is one of the more hawkish major CBs on a relative basis. Another factor of consideration is the USD, which has put in a strong response after the initial test of fresh yearly lows at the release of the FOMC statement yesterday.
This could remain as one of the more attractive venues for USD weakness but the bulls are going to need to show another higher-low go show that they might be able to leave behind that 1.3267 level. The bearish TL that was resistance last week can now be looked to for higher-low support potential. That currently projects to around the 1.3200 handle. - js
I looked at the pair again earlier this week after it had rallied up to a trendline produced by August and hat was at the time, September swing highs. At that point, I shifted the focus to support at the 1.3143-1.3161 area, which held and led into a bounce at the outset of yesterday's FOMC rate decision.
That led to yet another pullback to that support zone, which again held the lows into this morning's BoE and that brought another fresh two-year-high into the mix.
At this point the pair is difficult to chase, especially given the extended wicks above the 1.3267 high. Bulls have had a couple of different chances to drive through that but, so far, have failed.
With that said this is also a tough pair to fade at the moment given that recent strength along with the fact that the BoE is one of the more hawkish major CBs on a relative basis. Another factor of consideration is the USD, which has put in a strong response after the initial test of fresh yearly lows at the release of the FOMC statement yesterday.
This could remain as one of the more attractive venues for USD weakness but the bulls are going to need to show another higher-low go show that they might be able to leave behind that 1.3267 level. The bearish TL that was resistance last week can now be looked to for higher-low support potential. That currently projects to around the 1.3200 handle. - js
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