Analysts from Brown Brother Harriman, warns that today’s decline in the/rates-charts/gbpusd GBP/USD pair could set a potential key reversal.
“The market heard a dovish Bank of England today and sent sterling down by around than one percent. Initially sterling had reached its highest level since the US election; extending its recent rally a little through $1.27, but has now reversed lower.”
“A close below yesterday's low ($1.2540) would be a potential key reversal. We had identified several technical signals that had suggested potential toward $1.28. Trend line and technical support are found between $1.2490 and $1.2525.”
“A break could signal a move toward $1.2400-$1.2430 initially, and maybe $1.2260, if/when the US dollar rally resumes.”
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