Pound falls in a reversal
It’s a tough day for the cable bulls. GBP/USD hit a one-week high of 1.3019 but has since reversed down to the lowest since March 10 at 1.2947. The low in March was 1.2939 and that’s a critical support level.
Here’s an 8-hour chart:
Cable is caught in a large US dollar bid at the moment and there are no easy answers for what’s driving it. I think equity inflows are part of the story with Q1 earnings looking a lot better than expected. US futures are only up modestly but we’ll see what happens at the open.