As important technical thresholds have already been cleared for GBP/USD pair, Micaella Feldstein, Research Analyst at Natixis anticipates a deeper decline to supports at 1.26-1.2615.
“The 1.2981-1.30 area (daily parabolic) capped the upside at last yesterday and forced the cross to reversed downside markedly. As important technical thresholds have already been cleared (at 1.2916 (daily Bollinger moving average) and at 1.28-1.2820 (daily Bollinger lower band)) and as the daily volatility tends to increase, we anticipate a deeper decline to supports at 1.26-1.2615 (weekly Bollinger moving average).”
“Note that a break below these thresholds would affect the weekly upside parallels, paving the way for further downside in the next days to 1.2470-1.2490 (Fibonacci extensions), the 1.24 symbolic threshold even 1.23401.2367 (weekly parabolic). The resistances are at 1.2770, at 1.28-1.2820, at 1.29-1.2916 and at 1.2981-1.30.”