Technical Analysis

Cable climbs back above 1.29 as pound extends recovery

GBP/USD touches a high of 1.2905 on the day

ForexLive

There’s no particular headline that I can attribute this to but once again, I’m a little skeptical in the rally today as this is coming ahead of the wages data to be released at 0930 GMT. And we’ve seen this kind of moves before in such circumstances.

The 3 October low @ 1.2925 in GBP/USD should provide some resistance in the near-term but with Brexit worries still yet to be cleared, I’m failing to see how the gains here can be sustained.

Given the backdrop, it’s making for a good selling opportunity once the wages data is out of the way later in the day.

The recovery in the pound also sees it push to a high of 147.23 against the yen, closing in on a test of the 200-day MA:

That will be a key battleground for GBP/JPY ahead of the wages data later and with Brexit worries still looming large for the pound.

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