FXStreet (Barcelona) – The AceTrader Team explains that any GBP/USD recovery remains a sell for 1.5043 levels, but above 1.5305 will negate this view.
Key Quotes
“On the bigger picture, although cable’s rally abv Apr’s 1.5498 peak at 1.5498 to as high as 1.5815 in May confirms MT downtrend fm 2014 peak at 1.7192 has formed a temporary low at 1.4566, subsequent retreat n y’day’s selloff to 1.5170 strongly suggests aforesaid corrective rise fm 1.4566 has ended n the 3-legged decline fm 1.5815 is en route to 1.5043 (being 61.8% r of the entire said rise fm 1.4566) later this week. Therefore, selling the pound on recovery in anticipation of further weakness to abovementioned target is favoured.”
“Only abv y’day’s high at 1.5305 wud violate recent series of lower highs n lower lows, then risk is seen for stronger rebound to 1.5343 n 1.5386 but last Wed’s high at 1.5437 shud cap upside.”
“Today, as current price is trading below the 21-hr n 55-hr emas, selling cable on recovery is recommended. Only abv 1.5305 signals low, 1.5343 n 1.5386.”
(Market News Provided by FXstreet)