Although intra-day fall from 1.6496 on week UK data signals the decline from 1.6547 top is still in progress and may bring a stronger retracement of recent upmove to 1.6355-60 (38.2% Fibonacci retracement of 1.6055-1.6547) cannot be ruled out, near term oversold condition should limit downside and bring rebound later.
Source: ActionForexall Rss Feed
As the British pound has rebounded again due to short-covering on back of dollar’s retreat versus other European currencies, suggesting further consolidation above last week’s low of 1.6147 would take place and retracement to the Ichimoku cloud bottom (now at 1.6277) would be seen, however, resistance at 1.6322 should limit
Source: ActionForexall Rss Feed
Although the British pound has retreated from 1.6518, cable’s intra-day rally on hawkish BOE inflation report adds credence to our view that a temporary low has been formed at 1.6270 earlier this week and consolidation with upside bias remains for retracement of recent decline to previous resistance at 1.6544 but
Source: ActionForexall Rss Feed
Despite intra-day marginal fall to 1.6355 (yesterday’s low was 1.6357), lack of follow through selling and the subsequent rebound suggest consolidation would take place and retracement to the Ichimoku cloud (now at 1.6501-09) cannot be ruled out, however, upside should be limited to 1.6540/50 and renewed selling interest should emerge
Although current breach of previous support at 1.6453 confirms the decline from 1.6747 top has resumed and further weakness to 1.6393 (61.8% projection of 1.6747 to 1.6453 measuring from 1.6575) and possibly towards 1.6360 is likely, however, reckon 1.6342 (50% Fibonacci retracement of 1.5937-1.6747) would hold from here due to weakening of downward momentum.
Although the British pound has rebounded in tandem with euro, break of resistance at 1.6747 (last week’s high) is needed to confirm recent upmove has resumed and extend gain to 1.6790/00 but near term overbought condition should limit upside and reckon 1.6866 (100% projection of 1.6166-1.6600 measuring from 1.6432) would remain intact.
Despite intra-day rally to 1.6747 on dollar’s broad-based weakness, as the British pound has retreated from there in part due to profit-taking, suggesting consolidation below said resistance would take place and test of the Kijun-Sen (now at 1.6624) cannot be ruled out, however, break of previous resistance at 1.6600 is
