GBP/USD
Demand for CABLE continued yesterday with a 3rd up day in a row resulting. This kept the currency pair ‘hugging’ the upper end of a positively trending Keltner channel. The highs were not held as the market consolidated at overbought extremes and signals for sentiment are showing increasing potential for a reactive move.
So our call for this morning is Temporarily Bearish below 1.6922. The immediate objective is 1.6862 and a move through that point should see the market focusing on 1.6829, Wed’s open or even 1.6808, the 13 day moving average.
The risk is that profit taking is being overrated – signalled above 1.6922, yesterday's top, to 1.6955 or even 1.6977.