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Pound Sterling rides the gilt rout while Westminster wobbles

Cable bottomed at the 1.33 handle in Asian trade and ground higher through London and New York to close back above the 1.34 handle, a session range of roughly 150 pips and a textbook reclaim of the 200-day exponential moving average on the daily chart.

🔗 Source

💡 DMK Insight

Cable’s bounce off the 1.33 level is significant for traders looking for momentum shifts. Reclaiming the 200-day EMA suggests a potential trend reversal, especially if it holds above 1.34. This move could attract both retail and institutional buyers, particularly if we see further bullish sentiment in the broader forex market. Keep an eye on the 1.35 resistance level; a break above that could signal a stronger uptrend. However, if we see a pullback below 1.33, it might indicate a false breakout, leading to increased volatility. Watch for economic data releases that could impact the GBP/USD pair, as they could either reinforce or undermine this bullish momentum.

📮 Takeaway

Monitor the 1.34 and 1.35 levels closely; a sustained move above 1.35 could trigger further buying interest.

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