GBPUSD (D) - medium term bearish bias
The four-month-long rally in the British pound might have come to an end. Cable had surged in a textbook five-wave pattern, then came to a halt under the psychological level of 1.3500. The RSI indicated an over-extension as it crossed above 70. Sentiment has turned to the downside after buyers took profit. The 20-day moving average has crossed below the 30-day one, further suggesting that a deeper retracement is in the making. What we are seeing now is a corrective wave and a drop below the bullish trend line could trigger an extended sell-off.
Key support: 1.2830
Key resistance: 1.3200
The four-month-long rally in the British pound might have come to an end. Cable had surged in a textbook five-wave pattern, then came to a halt under the psychological level of 1.3500. The RSI indicated an over-extension as it crossed above 70. Sentiment has turned to the downside after buyers took profit. The 20-day moving average has crossed below the 30-day one, further suggesting that a deeper retracement is in the making. What we are seeing now is a corrective wave and a drop below the bullish trend line could trigger an extended sell-off.
Key support: 1.2830
Key resistance: 1.3200