Analysts at Scotiabank explained that GBP/USD’s rebound stalled last week around the 40-day MA (1.4610 currently) which has capped the topside for the pound since late last year.
Key Quotes:
“Daily price action is negative (“evening star” reversal) around that failure, suggesting an important short-term top is in for Cable at least.
Intraday signals are weak too, with the GBP experiencing heavy selling interest above 1.45 this morn-ing.
Look for strong resistance now on short-term gains to the upper 1.44s/low 1.45s. Intraday losses may accelerate below 1.4350.”
(Market News Provided by FXstreet)