From a Technical standpoint we can see solid resistance forming in this current supply zone, which supports a RETEST of the SHOULDER that has formed around 1.19 Area. There will be a significant fight here however, as the downwards momentum of STERLING is very strong.
Fundamentally the outlook for GBP remains very challenging as opposed to the US Dollar. Whereas Powell is going to realistically need at least one or two more hikes, the BoE is in a rather precarious position. With inflation peaking the Bank of England doesnt have much more room to keep pumping rates up, while other economic factors arent coming as strong in England as they are in the USA, with USA JOBS and consumer index keeping the dollar strong.
Look for CABLE to retest lows at 1.19 and potentially dip further if price action allows it
Comment
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CABLE TOUCHED TOP OF FIB 61 ZONE AND REJECTED BEAUTIFULLY
SHORT ENTRIES SAFE
STOP LOSS ABOVE FIB ZONE @ 1.222
Comment
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CABLE WEAKNESS HAS PLAYED OUT
GBPUSD ENTERED SUPPORT BOX AND THEN EXITED THE ZONE