GBPUSD – Cable Facing Test of Prior Key Support

A combination of sterling weakness and dollar strength over the last few days has driven cable back towards 1.41 at a time when it was showing signs of finally gathering some upward momentum.

The pair now faces a test of its renewed weakness, with 1.4050-1.41 representing a region that it has so far this year found to offer decent support. In the brief period that it did trade below here, this area also became resistance for the pair.

A move below this zone would matter for two reasons. Firstly it would break the combination of higher highs and higher lows (albeit only one of each) that initially pointed to a possible period of bullishness in the pair.

Second, a move below the most recent low could open up a move back towards 1.3835, the low from the end of February.

A failure to break below here may indicate that it has once again been established as an important support zone for the pair, with resistance possibly being around last week’s highs, around 1.45.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.