September 28, 2021 14:26:08
GBP/USD sinks to eight-month lows
Cable has broken recent cycle lows at 1.3571 this afternoon, falling over 1% versus the dollar. The gains it made after the hawkish Bank of England meeting last Thursday have been fully erased. This advance failed to get beyond 1.3726 and the fall today has been swift.
The close here will be especially important, as we are nearing month-end and quarter-end. There is also a major Fib level (23.6%) of the March 2020 to June 2021 move at 1.3580 which will act as significant support.
If we lose this, then there are less obvious levels below until psychological markers like 1.35. Resistance above is the August swing low at 1.3602 followed by the 1.37 zone.
EUR/GBP pushes out of range
This pair has frustrated bulls and bears alike over recent months. That is what rangebound markets do. A fall to new lows at 0.8450 in August rebounded, while buyers had got to 0.8613 twice this month before sellers stepped in to push prices back around 0.85.
Today’s strong advance north has taken out the September high and we are not overbought on daily indicators. There is a resistance zone above which includes the upper Keltner channel and the July high around 0.8669. The 200-day SMA comes in at 0.8647 ahead of this area.
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