The Cable is still trading below 1.60 but, with a bit of USD weakness seeming to creep in, price is lifting up to a key intersection on this pair. There is important GBP unemployment data and the BoE inflation report due out tonight and these news items may help to trigger further movement here.
USDX 4hr: the USD is looking a bit weaker and even vulnerable to a potential triangle breakdown. A pullback on the USDX would help to lift the GBP/USD:
Cable daily: The GBP/USD has been trading within a bullish descending wedge on the daily chart for some time now. Previous efforts to break up through the upper wedge trend line have failed but it could be about to try and make another attempt:
Cable 4hr: there is an interesting juncture above current price on the 4hr chart. This is the intersection between the 1.60 level and the descending wedge trend line and I consider this level worth keeping an eye on. A clear rejection of this level could signal a new short entry. However, a close and hold above this level would signal a bullish breakout and a trend reversal. This descending wedge trend line has been in effect for almost 5 weeks and, thus, any bullish breakout would have to be viewed as significant:
Summary: watch trend lines on both the USDX and GBP/USD to gauge the next major move for the Cable.
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