We have been patiently waiting for momentum to turn higher, which it finally did yesterday thanks to the dovish 50bp BOE hike. It closed above its recent consolidation, having formed several lower spikes which held above historic highs. From here we now fancy a retest of its YTD high and move towards 7900, near its record high.
Trade closed: target reached:
Initial target at the YTD high was reached but prices have since pulled back. A break to new highs is still on the cards, but we'd prefer to wait for a better (lower volatility) entry.
