Cable advanced quite nicely but hit a high and began retreating, mostly due to the strength of the pound. What’s next for cable?
The team at Goldman Sachs provides a technical analysis for GBP/USD:
Here is their view, courtesy of eFXnews:
GBP/USD had a false break lower into the end of last week but ultimately still looks wedge-like and therefore corrective, notes Goldman Sachs.
“The entire move since the Jan. 23rd looks corrective/counter-trend. Furthermore, a bearish key day reversal formed last Thursday’s test of the 100-dma,” GS adds.
“Wedges often reverse the full extent of their moves so in this case, the market should eventually return to ~1.50. A daily close below the 55-dma (now at 1.5326) will increase the likelihood of this happening,” GS projects.
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