Thursday, 2 February 2017

GBP/USD at 23.6% Fibonacci retracement

After marking a fresh multi-month high at 1.2705 the GBP/USD pair dropped sharply today. The pair is currently visiting the 23.6% Fibonacci retracement of latest January to February uprise. Bears reached out and found a temporary shelter at this level as it’s acting as a support now. 
The four-hour time frame is showing bearish signals, generated by the technical indicators. Both RSI and Stochastic have turned to south and are displaying strong downward momentum. The price has crossed to below the 20-day SMA. Bears might be reinforced in case of passing through the 38.2% Fibonacci retracement of same upward leg at 1.2431. Although the current pullback might be seen as correction, the risk of further downslide remains in pace until the NFP data from US due tomorrow set more clear direction for the Cable.


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