Cable remains under pressure and could grind lower to the 1.3260 region in the short-term horizon.
24-hour view: “The sharp drop in GBP to 1.3317 yesterday came as a surprise (we were expecting GBP to trade between 1.3350 and 1.3410). While the rapid drop has room to dip below the major support at 1.3300, a sustained decline below this level is unlikely. The next support is at 1.3260. Resistance is at 1.3365 but only a breach of 1.3385 would indicate that the current weakness has stabilized.”
Next 1-3 weeks: “Yesterday (24 Nov, spot at 1.3375), we highlighted that ‘risk is still on the downside but slim chance for GBP to move to 1.3300’. We did not anticipate the subsequent sharp drop to 1.3317. In view of the improved downward momentum, a break of 1.3300 would not be surprising. The next level to focus on below 1.3300 is at 1.3260. Overall, the downside risk is deemed intact as long as GBP does not move above 1.3410 (‘strong resistance’ level was at 1.3445 yesterday).”
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.