A more technical look at the markets from InterTrader
The GBP/USD kick started the week on positive footing with the bulls pushing the market above the highs from Friday’s shooting star.
As the BoE sees inflation holding above the 2% target over the next two years, it looks like the central bank is moving away from its easing cycle, reinforcing the bullish outlook for sterling.
At $1.6205, at the time of writing, it looks like the bulls continue to be in full control and we could see the market testing September’s highs at $1.6268 soon.
We do expect some choppy price action on the way up, but as long as support at $1.6022 remains intact, there seems to be no reason for the bulls to worry.
GBP/USD Chart
On the daily trading chart, the market currently looks like it is breaking out and the upside penetration of $1.6268 could open the door to the $1.70 area.
Any movement to the downside could be seen as a buying opportunity for FX spread betting investors as long as the market remains well supported above $1.6022.
The main topic for today will be November’s UK Consumer Price Index report at 09.30 (GMT).
Good luck
Dafni Sedari
(Original article written 18 December 2012).
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