GBPUSD remains pressured
Cable price saw a small advance come to a halt after failing to move past the 1.2600 area. The Cable price is treading above 1.2500, and is looking for some firm support. 1.2580 is the key obstacle to lift before a meaningful recovery could materialise in the medium term. Failing that, further weakness would put 1.2500, or its breach would expose 1.2430, putting Sterling at the risk of a bearish continuation.
USDCHF holds onto gains
The dollar took a slight tumble as risk appetite grows in the wake of a dovish Fed policy outlook. A break below the psychological level of 0.8900 has prompted more buyers to cover their bets, positioning the franc on a potential recovery path. 0.8840 at the base of the latest bullish impetus is the first level to expect follow-through interests, and 0.8780 further down would be the bulls’ second line of defence. A close back above 0.8900 could attract momentum buying and open the door to the recent peak of 0.8950.
UK 100 clawing back losses
The FTSE found some relief from the recent sell-off as prices held above the 8200 level. A jump above 8275 has led short positions to close. However, stiff selling could be expected if price action drops below 8200, as previously trapped bulls would be looking to bail out unscathed. A bullish breakout would trigger an extended rally to this month’s high of 8325. On the downside, 8125 is the closest support in case of a prolonged consolidation.
