“The market pushed a little higher than we expected yesterday, peaking around 1.2705 before coming back under pressure. That is now key resistance, as a move back through there would suggest another test of the 1.28-1.30 medium-term resistance region,” says Robin Wilkin at Lloyds Bank.
While under this resistance Lloyds look for a test of trend line support at 1.2480, with a break there opening pivot support in the 1.2330/1.2300 region.
“As part of the medium term range we are expecting to continue to play out, broadly between 1.20 and 1.30,” says Wilkin.
The Pound has been an outperformer on global foreign exchange markets since the election of Donald Trump as US President.
GBP has been the only G10 currency that has done better than the USD since the US elections.
The GBP/USD exchange rate has steadily recovered from the lows garnered during the October 7 flash-crash and has built a steady momentum to the upside.
