GBPUSD looks like it may be turning its downward trend around, at least for a short term correction. Data from the US has not been as strong as expected and that has slowed the green back’s rise against major currencies. Add that there is more talk of a hike in the UK and you may see money flowing back into higher yielding gilts reversing the current bear trend for Cable.
The weekly chart shows price action has moved considerably away from the Ichimoku cloud, much more than the distance it had reached before its last correction, the ADX also is in high oversold territory. Today’s daily chart shows a break on the upside through the ichimoku cloud, if the lagged line follows that could also indicate further bullish price movement.