Sterling heading for a squeeze? - TDS

FXStreet (Guatemala) - Analysts at TD Securities analysed the conditions surrounding the pound due to the positive GBP/USD chart developments that are attracting attention.

Key Quotes:

"Firstly, Cable is testing three-month trend resistance off the July high at 1.6150 today (the 40-day MA lurks just above at 1.6184– versus today’s high of 1.6183)".

"Secondly, the rebound from the October low may be forming an inverse Head & Shoulders reversal, the neckline of which (1.6157) today’s push higher has also tested"

"GBP/USD gains need more supportive spreads to counter adverse seasonal trends in the next few weeks".

"Technical factors suggest a push higher may be a “go with” move".