GBP/USD - 1.0851.. Cable continued its recent losing streak last week, price met renewed selling at 1.1461 (Tue) n tumbled to 1.1213 on Thur. Sterling had a free fall to 1.0840 (NY) Fri due to market woes on UK's mini budget.

On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven usd's demand following free fall in global stocks, rally to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a 3-year peak of 1.4250 in May 2021 suggests low is in place. Having said that, cable's subsequent sharp fall on market's negative outlook on UK's economy to 1.1761 in July this year n then last week's breach of 1.1412 to as low at 1.0840 would pressure price to 1.0500, o/sold readings on daily indicators should keep price above psychological 1.0000 parity handle. Only abv 1.1213 risks 1.1406.

Today, Fri's spectacular decline to 1.0840 should pressure price to 1.0788, however, o/sold readings on hourly indicators would keep price abv 1.0715 n bring a much-needed minor correction. On the upside, only a daily close abv 1.1000 signals temp. low is made, risks 1.1096 later this week.

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AceTrader

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