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Forex pairs in this Article » GBP/USD (Edinburgh) -The GBP/USD is trading well into the red territory on Tuesday, after UK consumer prices came in short of expectations during October. Recall that, on a yearly basis, headline CPI advanced 2.2% YoY and Core prices 0.9% vs. previous estimates at 2.5% and 2.0%, respectively.

“The market last week tested and failed at the 61.8% retracement at 1.6122 3 times (of the move down from the 1.6255 peak) and while capped here the market remains directly offered… We regard the pattern as a potential double top and a close below 1.5895 will complete the pattern to offer a minimum downside measurement to 1.5535”, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

In addition, Strategists at BBH commented, “Sterling has been sold through the mid-October lows, which served as a neck line to a double top set near $1.6260. The measuring objective of this pattern is near $1.5520, which corresponds to a 61.8% retracement of the 14.5 cent rally off the July lows. It is also near the 200-day moving average ($1.5495). First, sterling needs to finish the North American session below the neckline, which is just below $1.59”.
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