In GBP/USD, Commerzbank notes that yesterday it charted an outside day to the downside breaking below the 6 month uptrend at 1.6784.
“Failure here will alleviate upside pressure and see the market come under downside pressure. Below support at 1.6732 (mid May low) lie s the 1.6683/72 late March high and the mid-April low and then 1.6794 th e 23.6% retracement if the 2013-2014 move,” CB projects.
“We have resistance at 1.6888 and 1.6937 and this is seen as the last defence for 1.7000,” CB adds.
In line with this view, CB runs a limit order to sell GBP/USD at 1.6850, with a stop at 1.7050.
