FXStreet (Edinburgh) - Axel Rudolph, Senior Technical Analyst at Commerzbank, expects the area of 1.6629/46 to cap any upside attempts in the very near term.
“GBP/USD’s swift descent has so far taken it to a four month low at 1.6537 from where it has so far risen back close to the 61.8% Fibonacci retracement at 1.6611”.
“Together with the 23.6% Fibonacci retracement at 1.6629 and the two month downtrend line at 1.6646 it should cap today”.
“Should this not be the case, the 200 day moving average at 1.6689 will be back in play”.
“While capped by it, GBP/USD will remain overall offered”.
“Below the current August low at 1.6537 lie the 1.6467/54 March low and 78.6% Fibonacci retracement. Longer term we look for losses back to 1.6000”.