TECHNICAL ANALYSIS

Cable drops to lowest level in two weeks thanks to stronger dollar


GBP / USD low to 1.2348 low, lowest since April 9

GBP / USD H1 21-04
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The cable finally seems to come off its range play between levels just above 1.2500 and the handle 1.2400. As the price peeks into the key support region, we see sellers starting to exert more control over the pair.

Right now, the price is testing support for the 61.8 @ 1.2350 retracement level, but beyond that, a race to 1.2300 will be coming.

Looking further, the key test for any major bearish move will be the April 7 low at 1.2166. If it gives way, there is not much that prevents a movement towards 1.2000 and less.

That said, let’s take it one step at a time. For now, the pair is moving lower on the strength of the dollar and potential financial concerns amid falling oil prices.

As such, beware of the Fed deciding to stick its finger in the pot again.

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