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Jul 30 - 07:24 AM
GBP/USD - COMMENT-Potential For GBP/USD Counter Trend Rebound
First appeared on eFXplus on Jul 30 - 05:10 AM

Fear of a hard Brexit has seen GBP/USD fall over 3% since July 25, and market sentiment argues for further losses.
However, the technical picture is beginning to suggest a rebound is due.
Those looking to join the sterling bear trend might benefit from better levels to sell as three major resistance points provide entry levels.
And while a no-deal Brexit threatens, a deal might be struck.
Current market conditions have sterling looking over-sold and the last three-days' acceleration lower could be a precursor to a rebound.
A full-blown reversal is not the call, but a 1% adjustment to 1.2240-50 is the risk.
Initial port of call on a rebound is at 1.2382, the previous significant low from July 17.
A daily trend resistance line taken off the 1.2784 June 25 high provides another key level and potential fade point.
The third key level is at 1.2518, the July 25 high and drop-off point for the latest sterling slide.
Related content:

GBP/USD Daily Candle Chart: Click here

Source:
Refinitiv IFR Research/Market Commentary

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