Strong bounce by cable continues for nowBritish Pound/US DollarFX:GBPUSDMichael_Stark_ExnessCable moved further up on 11 December to highs of around six weeks as the dollar generally weakened. Possible political instability in Britain is out of focus now and a cut by the BoE on 18 December seems to be fully priced in with around 85% probability. Inflationary pressure in Britain remains overall high, though, so the BoE might be significantly less dovish in 2026 while most participants are expecting two cuts by the Fed next year. Although cable’s bounce from November’s lows has been vigorous overall this phase might be approaching exhaustion. The slow stochastic has signalled oversold for nearly a fortnight and buying volume has dropped since 28 November. $1.35 would be the next clear possible target while the 23.6% weekly Fibonacci retracement around $1.337 is a technical reference. Most of the round numbers are possible supports with different likely strengths. Another push all the way down to $1.30 seems very unlikely in the near future unless data and sentiment shift significantly. As for euro-dollar, the double NFP on 16 December and American inflation two days later are centrally important releases which might make upcoming movements clearer. For the latest analysis and opinions, visit the link on my profile to follow me on X too. This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.