Cable running out of steam?

Author: Pete Jackson | Category: News

The rush of blood following the strong GDP release is starting to show signs of exhaustion with a recent high of 1.6135.  There is some fibonacci retracement/resistance around 1.6158 (61.8% of the  Sept 21 -Oct 23 fall), and the  17/18 Oct highs around 1.6160/70.

The move’s obviously put further downward pressure on EUR/GBP and a second close today below the 200 day MA at 0.8107 is likely to keep the cross under further pressure  This morning ‘s move matched the Oct 16 lows of 0.8065. A break here targets  0.8040 lows of Oct 14

GBP/USD’s around 1.6110 with the cross at 0.8074