We did break to the upside as suspected and the shallower channel has now been redrawn for a much longer standing, steeper channel to reflect the pick up in pace for the pound once again, which places the pound about midway within the trend channel. We are also now approaching a key level, the 161.8% fib expansion of the second half of this year-long rally so far. EURGBP is poised for either a double bottom for a break to the downside so this should be viewed as a leading indicator for price action for cable. Much currently depends on whether the EUR% index resistance will hold or not, a break there and the acceleration higher for the Euro could weaken the pound via a rejection from double bottom for the EURGBP. Conversely if it holds and we retrace for the EUR% index then the pound has Carte Blanche to rally with EURGBP likely to break to the downside. I am bullish GBP although dependant on the Euro break or rejection
**GBP% Index Resistance: GBPUSD 1.7194, 1.7300**
**GBP% Index Support: GBPUSD 1.7065, 1.7030**
Get RCIS Indicator here
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.