Buyers are firmly in control of the pair at the moment
It's been a puzzling day for currency traders as different themes are dominating different currency pairs at the moment. Sterling tops the bloc, backed by weakness in the dollar and the continuation of the trend for 2018 is at play once again today.
That has seen cable rise up to a high of 1.4275 on the day, and it looks like there's still further room to go towards the upside.
The hourly chart shows that buyers are firmly in control and the next test to the upside is at 1.4285 followed by the year's high at 1.4345.
Meanwhile, on the daily chart a firm daily close and a break above the 1.4268 levels could promote further upside potential in the pair. But currently, there are offers lined up at 1.4265 and 1.4280 as Mike pointed out here so that is something to look out for as well.
The recent bounce in GBP/JPY has also helped to keep the sterling bid, as the upward trendline that stemmed from last August is still holding on.
It's been an interesting day in the market, as sterling and euro are mostly preying on the dollar weakness. Meanwhile, the kiwi, loonie, and swissie are mostly unchanged on the day but have worked their way off the lows against the greenback. Then, we have the yen who continues to be weak driven by stronger equities and higher yields (correlation coming back again?). And lastly, we have the aussie who is just lagging behind on the back of poor data and a breakdown in technical levels.
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