Cable still range-bound, levels to watch are 1.6840 and 1.6770
Date: Monday 28 Apr 2014
Cable finished the previous week at 1.6802, what some technical analysts believe amounts to a "first indication" that it will eventually continue advancing.
Nevertheless, analysts warn that speculators are right to be wary that the way forward may not be a straight path higher.
For his part, Craig Erlam, Market Analyst at Alpari UK, explained to Sharecast that: "Cable, like many other pairs right now, is stuck in a fairly tight trading range, with 1.6840 proving to be a fairly significant resistance and 1.6770 a major support. While the pair having opened back above 1.68 by a couple of pips this morning may have been viewed as significant, the price action since has been more revealing.
"The pair has already fallen back below this level, taking out the gap higher over the weekend, which suggests to me that this period of range bound trading isn’t quite over yet. Until we see a significant break above 1.6840 or below 1.6770, this is likely to continue."
As of 06:23 GBP/USD was trading 0.07% lower at 1.6790.
AB
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