GBP: Still looking soft on the crosses
- EUR/GBP has had two daily closes now above .8600 prior resistance and the tendency would seem to be moderately bullish.
- GBP/JPY is in an overall bull trend but looks to have put in an interim top near 157.00. The first retracement has stalled near the 50% mark but there would still seem to be scope for a deeper pull-back towards the 61.8% mark at 145.00 (see chart).
- GBP/AUD looks horribly overbought and a minimum pull-back to the 38.2% level at 1.5960 (see chart) would certainly seem feasible.
I was a bit early last week in trying to buy the cable and while the GBP is headed lower on the crosses, there is little point in trying to pick a bottom in cable. Recent lows at 1.4830 were not re-tested yet but I’d expect any rallies now towards 1.5000 to meet with grateful sellers.
I’m medium term very bullish on the GBP but the timing isn’t quite right so I’ll sit back and watch for the coming weeks.