USD/GBP - Currency Futures Daily Candle Chart

USD/GBP - Currency Futures Daily Candle Chart

Following the sharp rally on Monday with the wide spread up bar in the usd/gbp currency future, this failed to follow through during the remainder of the week, with each subsequent day moving off the high of Monday. However it is interesting to note than none of these candles have formed wide spread bars, suggesting that any move lower may only be temporary and simply a reaction to Monday’s strong move upwards. In additon the last three weeks have seen the pair bounce off the 9 day moving average adding to the view that this is a temporary pullback before moving higher in the medium term with higher highs and higher lows. The previous high at 0.7350 will come into play shortly, and a move through this area will confirm the move higher.