Pound short with a close below 1.2.
This is a death giraffe (dead cat bounce type of formation).
GBP not only broke the support it had been making for over 40 years in 2016, it flatly rejected returning to this range.
Monthly bollinger bands are widening suggesting an era of volatility with all indications pointing that down is the likeliest direction.
I will wait for confirmation below 1.2 (yearly S1 pivot level) and with that, the target will be an even 1.0 (yearly s3 pivot level) as the first stop, I do not expect S2 to be much of a support considering the gravity of breaking the above level.
This is a death giraffe (dead cat bounce type of formation).
GBP not only broke the support it had been making for over 40 years in 2016, it flatly rejected returning to this range.
Monthly bollinger bands are widening suggesting an era of volatility with all indications pointing that down is the likeliest direction.
I will wait for confirmation below 1.2 (yearly S1 pivot level) and with that, the target will be an even 1.0 (yearly s3 pivot level) as the first stop, I do not expect S2 to be much of a support considering the gravity of breaking the above level.