The Cable currency pair is currently trading mostly unchanged on the day near 1.3745, having rached a peak of 1.3752 early Wednesday which was the highest level since May 2018.
The pair has pulled back from 32-month highs, seemingly following the decrease in the US stock futures. The S&P500 futures, which were flat earlier today, are now down 0.30%, suggesting revived risk aversion and possibly drawing bids for the dollar.
The UK will not publish any economic data this Wednesday, with the focus on US Durable Goods Orders, and the Federal Reserve monetary policy statement, even though the Fed is not expected to surprise investors. The number of new covid-19 infections in the UK continues to decrease, as the country reported 20,089 cases this Tuesday.
Nevertheless, the pair’s direct technical indicators remain bullish, as the higher lows and higher highs setup on the daily chart is still intact. A breach under Tuesday’s low of 1.3609 would invalidate the higher lows setup and shift the attention to the 50-day Simple Moving Average (SMA), which restricted the downside two times in December.
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