Cable has been bearish since falling from a 2-year high on a Jan 2nd. Sterling is experiencing a natural correction after a sharp rally against the dollar from November last year.
GBPUSD has since retraced as far as 38.2% of the down leg from the January 2nd high to the Jan 6th low and is currently just below the 23.6% Fibonacci retracement level of this move. The pair is trading below the key 1.64 level today despite a brief bounce above this area yesterday to 1.6432 but found tough resistance at this level which is the 38.2% Fibonacci level.
A bearish crossover of the 20-period moving average with the 50-period moving average is suggesting continued weakness down towards Monday’s low of 1.6336, which will be the first support level in a down-move.
Below this, 1.6315 will be targeted as a next support level (December 20 low) followed by 1.6272 (December 18 low).
RSI is in bearish territory below 50 and declining.
An intra-day bounce back up from current levels will target resistance at 1.6433 (38.2% Fibonacci level) and then 1.6464 and 1.6494. A move above this last level could see a fast move to the January 2nd high of 1.6592 and will weaken the current downtrend.
Cable has been bearish since falling from a 2-year high on a Jan 2nd. Sterling is experiencing a natural correction after a sharp rally against the dollar from November last year.
GBPUSD has since retraced as far as 38.2% of the down leg from the January 2nd high to the Jan 6th low and is currently just below the 23.6% Fibonacci retracement level of this move.
The pair is trading below the key 1.64 level today despite a brief bounce above this area yesterday to 1.6432 but found tough resistance at this level which is the 38.2% Fibonacci level.
A bearish crossover of the 20-period moving average with the 50-period moving average is suggesting continued weakness down towards Monday’s low of 1.6336, which will be the first support level in a down-move.
Below this, 1.6315 will be targeted as a next support level (December 20 low) followed by 1.6272 (December 18 low).
RSI is in bearish territory below 50 and declining.
An intra-day bounce back up from current levels will target resistance at 1.6433 (38.2% Fibonacci level) and then 1.6464 and 1.6494. A move above this last level could see a fast move to the January 2nd high of 1.6592 and will weaken the current downtrend.
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