Technically, charts have turned significantly against sterling and, if the dollar drives home its current advantage, the pound could go much lower, triggering major support points.
The dollar delivered a double blow as the Afghan crisis drives flows to safety and the U.S. Federal Reserve underpins by upping the taper ante. nL4N2PQ11L
Technical analysts point to a GBP/USD crossing of the 50-day moving average below the 200-day moving average, called a death cross.
This signal can point to a period of sustained weakness.
The two averages are converging and a crossover is likely unless sterling stages a strong rebound from its current bear run.
Current indications suggest GBP/USD could effect a full retracement of the 1.3573 to 1.3983 July 20-30 rally.
The final Fibonacci level off that move is at 1.3670.
A minimum correction of the long-term climb from the 1.1413 March 2020 low to the 1.4250 June 2021 high comes in just ahead of the 1.3573 July low at 1.3580.
Technically, these levels serve as viable sterling bear targets.
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