© Dukascopy Bank SA
On Monday the Pound has successfully bounced back from the channel down pattern's upper edge at 1.5240. The current losing streak amounts to more than 300 points as of Thursday afternoon. We expect GBP/USD to touch the support at 1.4868/56 in the nearest future, namely monthly S1 and weekly S2. As they are holding the key to the pattern's lower boundary, bulls will try to avoid any attempts to move beyond these supports. Their views, however, are not shared by weekly technical indicators. Moreover, the Sterling is now heavily overbought in the SWFX market, as 65% of all open positions are long. A decline below 1.4830 will inevitably put at risk the present 2015 low (1.4565).
© Dukascopy Bank SA