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Price action on GBP/USD as of Tuesday morning has hit a new 7+ year low after breaking down below the bottom border support of a prolonged wedge consolidation. Where this pair was previously giving signs of forming a tentative base, the dollar bulls have been relentless and overpowering against the European currencies this week thus far. At this juncture, the pair has reached and is stalled around very long-term support in the 1.3900 region. Any continued bearish momentum that breaks down and closes significantly below this level could target further support around the 1.3680 level, the low extreme reached over 7 years ago.
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2 Responses to “GBP/USD - Major Breach of Support to 7+ Year Low”
Hi James,
do we going 1.0500 below 1.3680 on cable what do you say on this market condition and an openion on euro cross eur/gbp short term or by this weeks.
thanks.
Hi St_Fx,
Thanks for your comment! In my opinion, it’s much too early to be talking about 1.0500 at this point. Seeing that the long-term low was broken with such strength and momentum, though, we should be seeing more bearishness on this pair to come, at least in the near-term. As for EUR/GBP, this cross continues to look somewhat bullish, as it has just made a pronounced bounce off uptrend support, and is technically emerging up from oversold. It’s probably not the best place to enter at this point, in terms of reward/risk ratio, but the technical bias at this point does generally continue to appear bullish for this cross. Thanks, St_Fx!
James Chen