GBP/USD: Confluent support at 1.3040 edges closer

Cycles & Levels: The weekly formation is still range-bound and likely to be so until the Brexit conundrum clears up. The daily remains in a valid down-cycle, while on the hourly the up-cycle continues its course even if we’ve seen an intraday setback. Sellers must re-gain the 1.30 level to gain the upper hand, although it’s going to take a breach sub 1.2955 (previous swing low) to negate the current up-cycle. Watch the confluent area of support at 1.3040, where an imbalance of demand may occur in line with the active up-cycle.

Correlations & Volumes: The correlations on the Sterling continue to point to lower levels, both the DXY and the UK vs US yield spread, while the volume saw is quite average. In favor of the sellers is the candle close, which has seen barely any profit-taking.