Sterling: The decline is ongoing. I position Sterling to 1.4800
After payrolls and BOE Meeting last week, I think the mood to trade Sterling is SELL.
The reason according to my view are:
- FED definitely hike rate on December, and market will pricing for that decision.
- BOE delays to 'liftoff' because they want to see FED do first.
I see Technical Analysis is consolidating for the decline of Sterling.
4 breaks :
- Break 1: The trend line break.
- Break 2: Strong support at 1.5100
- Break 3: SMA50 + SMA 200 break
- Break 4: Kumo cloud break.
With the consolidation of downtrend, I believe GBPUSD will fall to 1.4800 and even further to the year low 1.4600
The reason according to my view are:
- FED definitely hike rate on December, and market will pricing for that decision.
- BOE delays to 'liftoff' because they want to see FED do first.
I see Technical Analysis is consolidating for the decline of Sterling.
4 breaks :
- Break 1: The trend line break.
- Break 2: Strong support at 1.5100
- Break 3: SMA50 + SMA 200 break
- Break 4: Kumo cloud break.
With the consolidation of downtrend, I believe GBPUSD will fall to 1.4800 and even further to the year low 1.4600
