Forex Analysis : GBP/USD
Sterling closed not too far below a key resistance level at 1.6270 or so, but a breakout here and a subsequent spike of 200 pips might have to wait a while longer
• It’s easy to imagine more pain for holders of US Dollars early this week, but be cautions, and in the case of Cable, we mean a breakout move at 1.6270 might have to wait, and instead of moving north with continued bullish intentions, the perverse FX market will in fact do the opposite with a resulting pullback to 1.5860-1.5900
• There is initial support at 1.6060 then 1.6030, so if long and it bounces a tad from open, it might be worth to take profits or even reverse VST positions.
• We wonder, is civil war in Yemen (seems increasing likely) enough for Brent to spike to U$ 123-125 this time?