David Solin, Foreign Exchange Analyst at FXA.com, comments on the near term outlook for GBP: “…there remains scope for gains back to the Jan. 2nd high at 1.6380 and even slightly above as part of this larger, topping process. Note that the market is seen forming a large rising wedge over the last few months, a reversal pattern that resolves lower (often sharply) after”.
As of writing, the cross is losing 0.23% at 1.6127 and a break below 1.6089 (low Jan.11) would expose 1.6005 (low Jan.10) and then 1.5992 (2013 low Jan.9).
On the upside, resistance levels line up at 1.6182 (high Jan.11) followed by the psychological level at 1.6200 and then 1.6255 (high Jan.3).
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