Cable looking slightly more under pressure after reaching 1.6824 yesterday and then staying sideways. We know there is good resistance at 1.6824/45. We would then expect sellers to try and come back in looking to hold below here. However, buyers do look determined at the moment and technically there is no reason we cannot trade higher except for the fact we now have divergence on the daily stochastics.
Above 1.6845 we would see a move towards key resistance at 1.6880. At this point we assume profit taking will occur. After this recent move higher I believe the sellers will want a slice of the action and that they will sell at this point while looking for a correction.
We have support at 1.6710 and already have seen a move to there both yesterday and overnight. This time though, buyers would be looking ready for another attack on the topside, so attempt longs, holding unless we see a break below 1.6695, yesterdays lows. 1.6695 breaking leaves the market wide open to further weakness and we see that weakness through to 1.6660. Failure to hold over 1.6660 leaves 1.6625/20 through to 1.6605 targeted.
GBP/USD Technicals" title="GBP/USD Technicals" height="242" width="474">