GBP/USD Still In Bear Country: Post Brexit Lows At Sight
|- The Pound hits out targets to the pip and reverses versus the Dollar
- The Pound is still pretty much under pressure
- The Pound hits its first targets from the reversal zone 195 pips lower
The British Pound is still under a lot of pressure due to weak UK data and the prospects of even weaker data in the near future. There is even talks about another rate cut by the BoE. All this is very bearish for the Pound.
The US Dollar is doing it job in keeping the $gbpusd down. Las week Janet Yellen said that the Fed´s rate hike odds have strengthened. ll this is very bullish for the US Dollar in the short term.
The Pound remains a sell-rallies until NFP on Friday.
Right now the $GBPUSD has hit its first short term bear targets at the 50% of the entire move up - bear flag. Short term bulls have appeared and shorts from the 1.3270 area are covering some. We expect a short term rally to the 1.3160 zone for a continuation of the down move.
The ultimate short targets are at the 1.2870 - 1.2850 zone for a retest of the Brexit lows. Should the US added more than the 186K jobs forecasted for friday is very plausible that the post Brexit lows will break on high volume during the NFP.
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