GBP/USD has rebounded nearly a half cent from the lows of the day as London trading winds down for the week.
Cable touched as low as 1.5957 — just ahead of Tuesday’s low of 1.5949 — a level where some buy orders are clustered and where the 55-day moving average sits.
Today was the only day this week where GBP/USD declined and the strong rebound points to the underlying tone of the market. The key level below the 55-dma is the October-November double bottom at 1.5894.
cable daily
A long at these levels protected by a stop at 1.5900 or the 55-day MA is a constructive idea for a trade now or early next week.