As noted in Friday’s update - GBP/USD – Bearish cloud cover & ‘J curve’ theory – the pair has dropped to 50-DMA. The pair clocked a low of 1.3138 and was trading around the 50-DMA level of 1.3154.
What’s next?
The spot appears on track to test 1.3059 (Aug 30 low) especially if the day end close is below 50-DMA level of 1.3154. Overall, the bearish mood is likely to persist, courtesy of - Dark could cover followed by two-day sell-off… followed by a big drop on Tuesday.
Short-term bearish invalidation is seen only if the spot sees a day end close above 1.3279 (Aug 26 high).
What’s next?
The spot appears on track to test 1.3059 (Aug 30 low) especially if the day end close is below 50-DMA level of 1.3154. Overall, the bearish mood is likely to persist, courtesy of - Dark could cover followed by two-day sell-off… followed by a big drop on Tuesday.
Short-term bearish invalidation is seen only if the spot sees a day end close above 1.3279 (Aug 26 high).
