The chart looks precarious for GBP/USD. The 200-day moving average cracked at 1.3698 and technically it is too soon to characterise the cable as technically oversold. Next support awaits at the 1.3570 level, analysts at Societe Generale report.
Sequence of lower lows and daily close below 200-DMA is bearish
“GBP/USD struggled to reclaim 1.4240 in June forming a double top. A steady decline has brought it towards the 200-DMA and more importantly, it is now threatening a breakdown from the formation. Signals of an extended bounce are still not visible.”
“So long as last week's high at 1.3910 remains unchallenged, the downward momentum could persist.”
“Next objectives will be at projections of 1.3570 and graphical levels of 1.3510.”
“Target for the double top is located at 1.3150/1.3130.”
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.