FXStreet (Edinburgh) - The current weakness around the sterling could drag the pair to the 1.6550 area, suggested Axel Rudolph, Senior Technical Analyst at Commerzbank.
“GBP/USD’s swift descent has so far taken it to a four month low at 1.6565 which was made below the 61.8% Fibonacci retracement at 1.6611 and the 1.6585 late February low with the 1.6558 April low now in focus”.
“Failure at the latter level will push the 1.6467/54 March low and 78.6% Fibonacci retracement to the fore”.
“Longer term we eventually look for losses back to 1.6000”.
“Minor resistance above the 200 day moving average at 1.6677 can be seen along the two month downtrend line at 1.6731. While capped by it, GBP/USD will remain directly offered”.