FXstreet.com (Barcelona) - The Sterling is trading in consolidation mode after the last bullish movement against the Dollar that take the pair from 1.6060, MA55 periods in hourly chart, to test 1-week high at 1.6195 throughout today's European session. The GBP/USD has retreated to trade around 1.6160/70 during the American morning ans currently, Cable is rising 0.30% so far today from opening price action at 1.6112.
According to the FastBrokers research team, the GBP/USD is consolidating as trend lines converge: The Cable is consolidating above our uptrend lines and the psychological 1.60 level as the EUR/USD experiences similar activity...yesterday's rally has created some breathing room between present price and the psychological 1.60 level once again. However, the Cable still faces multiple downtrend lines along with previous January highs. Furthermore, the 12/9-12/15 trading range could prove to be a solid barrier should it be reached. Therefore, quite a few obstacles remain considering the extent of December's downturn.
FastBrokers concludes: As for the downside, the Cable has multiple uptrend lines serving as technical cushions along with the psychological 1.60 level and previous January lows. Meanwhile, our 3rd tier uptrend line and 1st tier downtrend line are headed for a collision and we notice a similar occurrence in the EUR/USD. Hence, the FX markets could be in for some volatility soon.