GBPUSD corrective setback risk
- A more defensive tone than anticipated on Tuesday, with a probe below modest chart support at 1.6985/75.
- This leaves risk for a further correction into midweek, towards our previously defended (post-FOMC) support at 1.6925/20.
- We look for this support to try to hold and having overcome the 1.6998 cycle peak and psychological/ option barrier at 1.7000 and the 2009 peak at 1.7044, see late June risks as still higher.
- Whilst above 1.6925/20 we aim for Fibo extension levels at 1.7175 and 1.7255 and potentially into early July for a long term retrace, at 1.7335.
WHAT CHANGES THIS?
- Below 1.6920 eases bull risks; through 1.6800 signals a neutral tone, only shifting negative below 1.6740.
4 Hour GBPUSD Chart
Weekly GBPUSD Chart