Cable rolls over & consolidates

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GBPUSD, daily

GBPUSD raised 1.3636 during the European morning but remains in yesterday’s range and tested the key 1.3600 even.

The rise in yields has fizzled out for now and with Treasuries outperforming core European markets, the dollar struggled during the European AM.

The fact that British Prime Minister Johnson has managed to hold on despite the heated debate over “Partygate” and calls for his resignation may have helped Sterling somewhat this morning, but there still appear to be attempts to garner sufficient support for a no-confidence vote, z now the pound is finding support and has also risen against the EUR and Yen.

There were more new revelations this morning from Conservative MP William Wragg, who accused the government of being a lash and No 10 bribery and breaking ministerial code, who says they have threatened to withdraw investment from MPs’ constituencies if they back the no-confidence vote.

Technically on the Daily time frame cable rallied and rejected the 200-day moving average 1.3750 last week and tested under the psychological key 1.3600 in this week.

This is the first of the Fibonacci levels, the next one is sitting up 1.3525, 1.3460 and the important 61.8 level at 1.3400. To move higher, the 1.3600 Level must hold and an injury and interruption 1.3750 must happen.

today, the 200 hourly moving average is at 1.3640, is the 20-hour moving average 1.3620. Support below the button 1.3600 is yesterday’s low at 1.3585 and Tuesday low at 1.3570.