GBP/USD Classical Technical Report 10.14
GBP/USD: The break back above 1.5715 on Wednesday triggers the formation of an inter-day double bottom on the daily chart which now opens a fresh upside extension towards a measured move objective at 1.6100. The 1.6100 area also loosely coincides with the 100/200-Day SMAs, but we would expect that any additional gains should be capped by these longer-term SMAs ahead of a resumption of the broader underlying downtrend. However, inability to extend gains followed by a break and close back below 1.5665 would suggest that the corrective rally has come to a premature end, and should accelerate declines.
--- Written by Joel Kruger, Technical Currency Strategist
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