Cable running out of steam?
The rush of blood following the strong GDP release is starting to show signs of exhaustion with a recent high of 1.6135. There is some fibonacci retracement/resistance around 1.6158 (61.8% of the Sept 21 -Oct 23 fall), and the 17/18 Oct highs around 1.6160/70.
The move’s obviously put further downward pressure on EUR/GBP and a second close today below the 200 day MA at 0.8107 is likely to keep the cross under further pressure This morning ‘s move matched the Oct 16 lows of 0.8065. A break here targets 0.8040 lows of Oct 14
GBP/USD’s around 1.6110 with the cross at 0.8074