Sustained USD promoting bias allowed the GBP/USD pair to achieve traction for the 2nd consecutive session and cross returned above mid-1.3500s as bulls appear to trap manage however the cable stays at the mercy of USD rate dynamics. What’s more, skinny liquidity prerequisites warrant some warning earlier than putting directional bets, FXStreet’s Haresh Menghani reports.
“There is not any fundamental market-moving monetary information due for release from the UK, leaving the pair at the mercy of the USD rate dynamics. Meanwhile, the US monetary docket facets the launch of Goods Trade Balance data, Chicago PMI and Pending Home Sales. This, alongside with the US stimulus headlines and the broader market danger sentiment, will be regarded upon for some buying and selling opportunities. That said, merchants have little incentive to region sparkling directional bets amid year-term skinny liquidity conditions.”
“Any subsequent nice go is in all likelihood to confront resistance close to the 1.3575-80 region. This is carefully accompanied through the 1.3600 mark and double-top hurdle close to the 1.3620-25 region. Bulls may wait for a sustained pass past the referred to obstacles earlier than putting clean bets.”
“Immediate aid is pegged close to the 1.3520-15 location – marking the 23.6% Fibonacci degree of the 1.3188-1.3620 current robust cross up. Failure to protect the cited aid and a subsequent weak point beneath the key 1.3500 psychological mark would possibly immediate some sparkling technical selling.”