The next level of support in GBP/USD is the previous interim high from May at 1.6996, notes CitiFX Technicals.
“Decent support below that is at 1.6843 where we have the 21 week moving average,” Citi adds.
“That is unlikely to be tested this week but a close below 1.6996 would add weight to the bearish indications (weekly momentum crossing down from stretched levels and hold of major resistance levels just below 1.72 ),” Citi projects.
“Note again that every correction seen this year (there have been 3) has taken the pair to the 21-week moving average,” Citi adds.
In line with this view, Citi maintains a short GBP/USD position as a technical trade recommendation from 1.7124, with a stop at 1.7225.