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Sep 18 - 11:55 AM

GBP/USD - COMMENT-Sterling Fails At 1.3000 For 3Rd Day, Bears Eye Opportunity

By Paul Spirgel  —  Sep 18 - 10:30 AM

GBP/USD slid on Friday after failing for a third day to surmount resistance near 1.3000 nL1N2GF0AE, suggesting a rare opportunity for sterling bears after a long summer rally.

Cable has managed only a shallow bounce from last Friday's 1.2763 trend low.
Coupled with what appear to be firm offers near the daily cloud top, currently at 1.2958, the pound's fortunes may
be fading.

Despite this week's rise off the trend low, GBP/USD is down 3.04% in September, and 4% from its Sept.
1 high at 1.3481.

GBP/USD bears continue to focus on mounting no-deal Brexit risks, with a worst-case outcome having the potential to stir the BoE to adopt negative rates.

The reversal of weak dollar sentiment after Fed Chair Powell delivered the Fed's inflation target shift at the Jackson Hole Symposium nL1N2FT16R is also a threat to GBP/USD.

With Brexit and UK rate uncertainties mounting, GBP/USD bears could resume selling, making a run at lower 30-day Bolli support at 1.2780 and the Sept. 1 trend low at 1.2763.
Below 1.2763, bears would target mid-July's double bottom by 1.2520 and then June lows by 1.2250.
For more click on FXBUZ

GBP Chart: Click here

Refinitiv IFR Research/Market Commentary


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