GBP/USD continues to move back towards the 1.5780/70 double top in the hourly time frame after breaking over the resistance of the hourly falling channel that had been containing price since the beginning of the month.
The movement of Sterling is likely to be affected by the movement in selected core Euro-Zone sovereign markets. In particular we note that Italian 10 year yields are still trading close to 7.00%. Daily structure is also suggestive of a return to test 7.00% and higher. A continuation of higher yields may see Sterling being adopted as a safe haven again. This reasoning would likely help to keep cable within its year long range.
Failure to remain above 1.5423 will see an immediate target at 1.5272 and then potentially trend-line support at 1.5110.
Daily Technical Report
