Daily Forex Update: GBP/USD

The intraday view of the GBP/USD (also known as "the cable") has been trending higher. The series of higher lows is acting as the support, or "backbone" of the move, reflecting the buying support which occurred in the past whenever the trend pulled back due to selling pressure or profit-taking. Recently, however, the pattern has appeared to lose some of its upward momentum, and could be in the process of finding a more sideways range. (This is suggested by the fact that prices have exhausted at 1.5485, just 15 pips from the 1.5500 "big figure" level.)