FX

Cable to target 1.5790 and rebound

After bouncing off its 42 year trend line at 1.7091, GBP/USD has is set to correct back to 1.582 in Q4 which may provide a good buying opportunity, says Chris Williams at Soc Gen. This should be supported by a significant RSI reading signalling oversold conditions in the cross.

USD/JPY breaks out but outlook mixed

USD/JPY has seen a significant break out of a trading range bounded by its 20 and 50 week moving averages, say analysts at ADS Securities. However, momentum has declined suggesting a lack of conviction for further gains. A move back below 101.80 would signal the start of a downward trend.

Ichimoku shows USD strength vs EUR & GBP

Ichimoku (cloud) chart analysis shows the US dollar index continuing to gain strength following the low touched at the beginning of July, says David Linton at Updata. Gains against the euro and GBP should be expected although for Cable, a move below 1.6730 is needed for the longer-term rally to end.