The pound edged higher against the U.S. dollar on Friday, but gains were limited as sentiment turned cautious amid ongoing uncertainty surrounding talks to avert the looming fiscal cliff in the U.S.
Cable is likely to find support at 1.6065, Thursday’s low and resistance at 1.6201, Thursday’s high.
Trading volumes were thin as many investors already closed books to lock in profit before the end of the year, reducing liquidity in the market and increasing the volatility.
Market players remained focused on developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1 unless Democrats and Republicans agree how to cut the deficit. news From inv
Our preference: Long positions above 1.611 with targets @ 1.62 & 1.6235 in extension.
Alternative scenario: Below 1.611 look for further downside with 1.606 & 1.6 as targets.
Comment: technically, the RSI is above its neutrality area at 50.
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