GBPUSD - Return of demand to re-test 1.6132
Yesterday saw Cable attract some profit taking above 1.6000. The resulting rally was a modest one, dominated by early price action and the highs were not maintained. Yesterday afternoon and overnight trading has seen the market consolidate beneath 1.6100 but despite this uncertainty intraday signals remain supportive. In view of this our call is Cautiously Bullish but to leave room to Buy a Dip to 1.6063. The risk is 1.6035 and the immediate target is 1.6104. A move above that level then targets last week's 1.6132 top or even 1.6176.
The risk to this call is a move below yesterday's 1.6035 open indicating that buying pressure has stalled and reversed targeting 1.6013, yesterday's bottom.