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GBP/USD Chart 24/02/2016

GBP/USD continued collapsing on Tuesday, falling below the support (now turned into resistance) of 1.4070 (R2) and then below the round figure of 1.4000 (R1). Cable started its free fall after it tested the lower bound of the triangle that had been containing the price action from the 3rd until the 11th of February. Therefore, I see a negative short-term picture and I would expect the dip below 1.4000 (R1) to open the way for the 1.3850 (S1) support zone, defined by the low of the 18th of March 2009. Our short-term oscillators reveal strong downside speed and amplify the case for the rate to continue lower. The RSI slid and fell below its 30 line, while the MACD stands well below both its zero and trigger lines. Zooming out to the daily chart, I see that the price structure remains lower peaks and lower troughs below the 80-day exponential moving average, which is pointing down. What is more, the dip below 1.4070 (R2) yesterday confirmed a forthcoming lower low on the daily chart, something that keeps the overall outlook to the downside.

POUND 24

 

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