Cable up nearly 300 pips in just over 24 hours of trading
From midday Friday to now, cable has risen to 1.4444 from 1.4148 -- just shy of 300 pips. It climbed 100 pips late on Friday and another 200 today in what looks like a great sign for the bulls.
GBP/USD was beaten up in January as the Bank of England took a less hawkish view. From mid-December to January 20, the pair fell more than 1100 pips. Even a 38.2% retracement would target 1.4521.
The 50% retracement is a good possibility as Fed officials take a less hawkish view and that would target gains to 1.4658.
The pair has resolved a week of choppy trading with a strong rally today. The drops on Jan 25, 26 and 28 couldn't attract momentum for a push to the Jan 20 low. Combined with the rally today, that's a bullish signal that a temporary bottom is in.
The main risks this week are a heavy slate of US data including non-farm payrolls on Friday and the Bank of England decision on Thursday.
