GBPUSD looks set to test bottom end of pennant formation
GBP/USD having been very stretched to the upside, looks likely to now reverse lower.
The market, as I type, is testing the double top support around 1.2650 which capped Aprils rally. Of note, the 200 Day Moving average was the catalyst for those market tops.
We have now broken the 200 Day MA on an intra-day basis and the test will be to see if we close below that important marker. Should that be the case then likely next stop will be the lower end of the pennant which comes in around 1.2400. With a continued sell-off targeting 1.2100
The market, as I type, is testing the double top support around 1.2650 which capped Aprils rally. Of note, the 200 Day Moving average was the catalyst for those market tops.
We have now broken the 200 Day MA on an intra-day basis and the test will be to see if we close below that important marker. Should that be the case then likely next stop will be the lower end of the pennant which comes in around 1.2400. With a continued sell-off targeting 1.2100