Pound / dollar had a significant upward momentum yesterday, sliding over the 'tail' of the downward pin bar. This fact should invalidate the bearish scenario on the bearish pin bar. The prospects are bullish to test the key resistance 1.4275 - 1.4344. Intraday support is 1.4190. A clear breakthrough below this level could take the price to a neutral zone with 1.4125 testing. But as a whole, I stay in the bulls camp and every downward pressure should now be seen as a good opportunity for purchases.
Yesterday’s strong drop in Cable has been in tandem with rising volume and shrinking open interest, although by irrelevant levels. The inconclusive activity in both open interest and volume allows spot to extend the consolidation, with gains clearly capped by the 1.4100 neighbourhood for the time being.
The British pound recorded an increase against the US dollar on Monday. The session started at 1.4087 and finished 43 pips higher. The chart continued to grow above the moving averages, while the relative strength index remained neutral. Overall, the upward movement is devoid of impulse, but a break of 1.4215 will reinforce positive attitudes.
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