The cable spikes through the February 2019 high at 1.3350, rallies to 1.3380 shy at 50.0% fib reaction 1.3390/1.3400. It seems the stage is very much set up for the cable to go beyond 1.3400 level. Last three days price action has laid the support at 1.2960. A move beyond 1.3400 would unfold next leg of the rally towards 1.3580/1.3620 its 61.8% fib reaction. We more focus on the daily RSI, which has been traced out a double top pattern. The RSI breakout needed to forecast a successful and safe rally further higher.
Besides, the euro cross EURGBP manages to hold the 0.8470 Tuesday’s low. There is a Brexit vote story going on which develops some sharp GBP moves. It will be interesting to see if we close below 0.8470-0.8450 zone by today. Note that the daily RSI has been stabilizing around 35 levels, based on this fact we expect the downside risk is limited to 0.8400/0.8380 levels (two-day forecast).
Besides, the euro cross EURGBP manages to hold the 0.8470 Tuesday’s low. There is a Brexit vote story going on which develops some sharp GBP moves. It will be interesting to see if we close below 0.8470-0.8450 zone by today. Note that the daily RSI has been stabilizing around 35 levels, based on this fact we expect the downside risk is limited to 0.8400/0.8380 levels (two-day forecast).