GBP/USD - part b) A View in Context to S&P500

FX:GBPUSD   British Pound / U.S. Dollar
GBP/USD and SPX are closely related. The chart comparison of SPX versus GBP/USD show a fairly negative correlation.

This is odd, and unusual to history, because it implies that USD is positively correlated with the SPX . Its a strange situation where rate hikes are interpreted as 'good' for the market.

With this in mind, a sell-off in SPX would undermine the economic recovery, and also expected US rate increases, which is turn would be good for GBP.

Absent of a sell-off the UPSIDE risk to GBP, is a UK interest rate increase. I think this is entirely possible with rapidly increasing inflation here in the UK, and faster than in U.S. (you must check this yourself).

Conclusion: pause and wait for GBP/USD to close above Resistance. If so, initiate a long position.