Financial Advisor

GBPUSD - Cautiously Bullish above 1.5676

There was little net movement in GBPUSD yesterday. Minor net gains were posted but all price action was contained within Monday’s range. This ‘Inside Day’ highlights investor indecision but gradually higher lows keep the underlying tone positive and despite intraday signals for sentiment now at overbought extremes, we look for gains to extend.

In view of this our call is Cautiously Bullish above 1.5676. The immediate objective is 1.5756, this week's top, with a move beyond that point targeting 1.5788, Monday’s peak, or even 1.5843, last Friday’s high trade.

The risk to this call is that overbought extremes begin to correct earlier and lower than currently assessed. This would be signalled by a move below 1.5676, yesterday's European afternoon low, with subsequent downside targeting 1.5631, this week's base, or even towards, but not as low as, 1.5568, this year’s open.

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