GBP/USD up 66 pips on the day
Cable had its worst day in more than a year on Friday but it rebounded to start the week and that continued today.
In the past few minutes, the pair cleared the 61.8% retracement of the drop as it rose above 1.3193. Ideally, I’d like to see it clear or 1.3200/05 to sound the all-clear because it’s not the cleanest drop and retracement.
Still, it’s a small notch in the belt for the bulls, and there aren’t many of them. The latest CFTC report showed shorts at the highest level since May 2017.
Aside from technicals, the rebound from the extremely bearish newspaper headlines on Friday is impressive.