Cable Looks Impressive As Bulls Gain Strength
The GBP/USD pair ended the day with limited gains, once again finding buying interest on retracements towards the 1.5300 region. The technical bias however remains bearish because of a Lower Low in the recent downside move.
In the UK, the Conference Board Leading Economic Index increased by 0.2% in August, above July reading of -0.3%, but the indicator can hardly be considered a market mover, producing little effect on the Pound.
On Tuesday, the UK will release inflation and PPI figures for September, which if they result above expected, can give the GBP a nice boost through the mentioned resistance.
Technically, the 1 hour chart shows that a mild positive tone prevails, as the price stands above a mild bullish 20 SMA, whilst the technical indicators stand above their mid-lines, lacking directional strength amid reduced trading volumes.
In the 4 hours chart, the price is a few pips above the 20 SMA and the 200 EMA, both converging in the 1.5330 region, whilst the Momentum indicator bounces from its mid-line and the RSI indicator consolidates around 60, all of which favors an upward continuation, as long as retracements down to 1.5260 continue to attract buying interest.