Richard Perry
Independent Analyst
GBP/USD
Cable remains under pressure as, even in the face of further negative dollar momentum across the major pairs, sterling has remained corrective. The run of selling into intraday rallies continues, as resistance built yesterday at $1.2850. Give that this lower high came around the resistance of the old lows from February between $1.2845/$1.2860, along with the basis of resistance generated from the 50% Fibonacci retracement (of the $1.2193/$1.3515 rally) at $1.2855. Yesterday’s latest intraday bull failure means that the market has also now closed below $1.2765. This confirms a broad corrective medium term configuration. It means that despite the mini early rebound today, another failed near term rally towards $1.2850 would be a chance to sell. The lower high at $1.3015 is key resistance, with Friday’s high of $1.2920 resistance above $1.2850. Initial support is at $1.2725 from last Friday’s low, but the next real support is the 61.8% Fibonacci retracement is at $1.2700, whilst price support is at $1.2580.
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