GBP/USD: The market has finally taken out the key 2010 lows by 1.4780 to confirm a fresh medium-term lower top by 1.5500 and open the next major downside extension towards critical psychological barriers by 1.4000 over the coming weeks. At this point however, with daily studies looking stretched, we would not rule out the possibility for additional consolidation above 1.4500 (on a close basis) before the market sets to break lower. Any inter-day rallies should be well capped ahead of 1.5000.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to discus this topic or any other feel free to visit our Forum page