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GBPUSD holds near 6 1/2 month high as traders eye key US events
Cable was last near 1.3675, with analysts pointing to caution signals from overbought momentum and daily candle patterns ahead of US PCE and a Fed Warsh speech.
GBPUSD, also known as Cable, was trading near the 6 1/2 month peak around 1.3675 after hitting that level on Friday, with activity turning quieter on Monday as traders slowed ahead of major scheduled catalysts.
Action Forex said the move comes before this week’s US PCE Index release and a speech by Fed official Warsh at the Jackson Hole symposium, events the outlet expects could deliver an updated inflation read and signals on the Fed’s next steps.
The outlet also flagged technical caution, citing negatively diverging 14 day momentum, an overbought RSI, and long upper shadows on Thursday and Friday’s daily candles, which it said could indicate bulls may start losing traction.
Despite the near term caution, Action Forex said the broader bullish structure remains intact, adding that it expects any corrective pullbacks to be shallow, with support areas it referenced around the 10 day moving average near 1.3559 and a deeper area around 1.3520.