The quid is on one of its power runs yet it has a lot to do before it breaks new ground
Give or take a few shillings, cable is up a nice 250 pips from yesterday's lows as it basks on the risk on beach with everyone else.
This year we've been contained in a rough 800 pip range in which the quid has roamed around to its hearts content. With the Brexit vote on the horizon it's unlikely that it will be allowed to stray too far from that range.
GBPUSD daily chart
As usual we've got ranges within ranges. 1.4400 & 1.4450, with an extension to 1.4515 & 1.4565/70 mark the top, while 1.4100 & 1.4045 mark the lower end.
We've got a developing wedge which is wide enough to let the pound wander between. It gives us some further levels to lean against. The top comes in at 1.4407, so right in the big figure mix. The 100 dma sits right on the 1.4450 level by a pip or so.
Pay heed to the 55 dma which is around that funny area of 1.4230 where we've seen support and resistance often coming in. It's at 1.4252 right now so should be taken into consideration if we move lower.
1.4280 is where we found resistance overnight and then support this morning. Some of that has likely moved up to protect 1.4300.
1.4400 hasn't had a proper test yet and there's a few of you looking for a short there. I might have a little big figure play but it depends on how things look if we get there. At the moment we just seem to be building up some support around 1.4350 and that may mean that we're in for a test sooner rather than later. There's some nice levels to pick and trade with some fairly low risk so play them accordingly.
