Steady as she goes
Cable is 45 pips above the session low and set for the highest weekly close since May 2018.
It had a setback today after touching a two-and-a-half year intraday high today but the market is taking the soft PMI and retail sales numbers in stride. It’s another example of the market’s ability to look through the pandemic and to a brighter future. Besides, in the post-pandemic era more economic softness only means more government handouts, something that’s already on the way.
I think you don’t want to lose sight of the longer-term charts in GBP/USD. There’s a nice, steady uptrend since September and an inverted head-and-shoulders pattern that could target +1.50.
Today’s price action shows that dips are opportunities for buyers because the medium and long-term outlook is good.