Weak UK data and a dovish BoE Quaterly Inflation report already knocked down the Cable. GBPUSD free fallen to 1.6700 quickly after rally to 1.6840. The Pound closed the day below 1.6700 with no signs of buying up. In the early morning, GBPUSD continue to move down and it now temporary hold at 1.6670.
As noted in previous daily comments, 1.670 is a good zone to buy, where everyone is waiting for signals to get long with the Pound. However, the change in fundamental has created a very strong bearish momentum and no one want to buy at this point. The next support level will be 1.6650 but seem not strong enough to hold the Pound.
We expect GBPUSD will continue to move down and test 1.6650 today.
Forex Trading Signal:
We will watch for sell signals around 1.6730 – 1.6750 today to short the Cable again with target 1.6650 – 1.6570
+1.7040 – 1.7065
+1.6700 – 1.67300