Sterling stays bearish versus Euro and US Dollar
Concerns are growing for a no deal Brexit and this is keeping negative pressures on sterling, says Steve Miley at The Market Chartist. From a technical perspective, however, this bearish tone for the pound versus both the euro and US$ has been in place since the mid-May surrender of key GBP support versus both these currencies.
GBPUSD bear threat intact
The latter April push below 1.2947 signaled an intermediate-term double top pattern and set an intermediate-term bear trend. A Friday plunge through 1.2652/40 and 1.2608 supports has reinforced the failure last week from below the 38.2% Fibonacci retracement at 1.2795. This resumes short- and intermediate-term bear forces to keep risks lower into the second half of June. The intermediate-term sees a a downside risk for 1.2437. Lower targets would be 1.2366 and 1.2109 but above 1.2814 shifts the outlook back to neutral; above 1.2916 is needed for a bull theme.
EURGBP aims higher
Mid-May saw a shift to an intermediate-term bull theme through the neckline for the base above .8723. The Friday rebound sets both the short-term bias higher and aims to resume the intermediate-term bull trend. The intermediate-term sees an upside risk for the retracement/chart target area at .8974/85. Higher targets would be .9062 and .9110. Below .8829 shifts the outlook back to neutral though .8783 is needed for a bear theme. Marketchartist / FX Explained