The GBPUSD hourly chart has developed bullish signals. Its trend-following EMAs and momentum based stochastic have crossed positively (black ellipses). If the EMAs develop angle and separation and the stochastic makes its way to the upper quintile (blue arrow), underlying bullish momentum will be present. Moreover, an upswing will likely develop if the stochastic can maintain above 80.
This development comes as Rishi Sunak takes over as the new UK PM. As a result, politically uncertainty has waned, which looks to be translating into lower volatility in the near term. However, the UK economy still faces headwinds, and cable requires watching as policymakers manage these.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.