Cable could fall to the 1.3200 area on a close below 1.3342, suggested Axel Rudolph, Senior Analyst at Commerzbank.
“GBP/USD’s correction higher recently faltered marginally below the 23.6% Fibonacci retracement at 1.3481. The Elliott wave count is still pointing to a corrective rebound into the 1.3500 and then 1.3600 area which would not even represent a 38.2% retracement, which lies at 1.3652. A close below the June 12 low at 1.3342 should be enough to trigger losses to the 1.3204 recent low. Below 1.3200 will trigger losses to the 1.3040 October low”.
“The March low lies at 1.3712 and this should offer a tough near term barrier. Rallies are expected to remain capped by the 1.3727 55 day moving average and while below here the cross will remain directly offered”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.