Cable spikes to session highs of 1.4295, threatens daily close above key resistance level
GBP/USD continues to trade higher, retesting the year's highs
It was a move that was coming since Wednesday. And here we are now.
The pair is up testing the year's highs at the 76.4/23.6 retracement level of 1.4268 and looks to threaten a daily close above it.
If successful, it would be a key indication for buyers that will open up a further move to the upside in the pair.
But of course, the pair still also needs to take out the year's high at 1.4345 to be certain of any further breakout towards 1.4500 and 1.5000 next.
However, as mentioned above the key now would be to look for a daily close above the 76.4/23.6 retracement level. That would bode well for buyers and a confirmation of a break above the year's high of 1.4345 would pave the way for the next move higher.
As Mike always said, "as traders ours is not to reason why, ours is to just buy and sell". Brexit rhetoric is currently taking a backseat and the market continues to prime for a BOE rate hike in May. That's enough for buyers to send the pair higher for now.
In case you missed my post at the start of the month, I highlighted that seasonal patterns have been very kind to cable for the month of April:
For the last 10 Aprils, it's been a positive month for sterling against the dollar.