The Cable does still retain some bullish potential and support, so far, has held above the 1.3500 psychological level. The disconcerting part here is that it’s been that way for a couple of weeks now and still, buyers haven’t been able to string together much of anything. When this takes place, when the door is seemingly open to strength that never shows, this is often an attractive environment to start looking for things to go the other way, and in GBPUSD, that would mean bearish price action.
The price level to watch for that theme would be the 1.35 psychological level, which came back into play this week. If bears can force a daily candle to close through that level next week, the door could quickly re-open on the short side. On the long side, bulls will want to see a poke through the 1.3650 level which would then expose the 1.3750 psychological level 100 pips above.
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