Pound going down and down as the selling grew thicker and noisy

The pound has been falling like a dead weight in the sky, down 13% from their mid-April peak against the USD and down more than 7.00% on YTD basis. Overnight the cable ignored the jobs data as the Brexit uncertainty driving the pound, and it fell to a 20-month low and trading below 1.2500 handle.

The cable is down for a sixth straight week, and the price is quoting at 1.2480 as on 08.25 AEST. On Tuesday Asian session the cable opened strongly but lost momentum into the London session, following two days of heavy falls.

The RSI is parked far below the equilibrium line to 50 points, currently sitting at 30.00. The oscillator is negative and stationed below its median point. The setting is still negative.
Immediate support finds between 78.6-80.0% fib reaction 1.2450-1.2400 below here; we are waiting for 1.2350/1.2330 mid-March 2017 low.

The flip side, resistances located at 1.2540 and 1.2640.

Also read GBPAUD forecast

The next four days pivotal finds between 1.2640-1.2700 above here we could expect a sharp squeeze to 1.2850 and 1.2900. Besides, more clarity on Brexit could sparkle a massive rally to 1.3500 and 1.3700, we are waiting for the bullish GBP season.

Hence, We remain cautiously NEUTRAL as we continue to study the action.


GBP chart pack:

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Technical story is developing….

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