Sterling fell vs USD, Yen; facing critical chart levels. Surged due to disappointing US data, 1.3880 might cap the rally

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Cable down with 2yr Gilt yields despite strong UK Q2 GDP data.GBP/USD may be resuming downtrend after counter-trend support break.GBP/JPY taking aim below 152.00 figure after range support is breached.

 

 

GBP/USD seem so have re-engaged the downtrend extending from June highs with a break of upward-sloping support guiding the late-July upswing. It’s now testing a support block in the 1.3729-98 zone, with a daily close below its lower bound setting the stage for a foray below the 1.3600 figure.

 

 

Immediate resistance is in the 1.3879-1.3910 area. A rebound that brings prices back above that barrier and confirms the breach on a daily closing basis may beckon another challenge of the 1.4000 handle.



GBP/JPY looks to have recoiled from downward-sloping trend resistance guiding prices lower since late May. Slipping below range support at 152.55 appears to have opened the way for the pair to retest support in the 151.15-29 inflection zone.

Immediate resistance lines up at 153.49, a barrier that has capped upside progress since mid-July. A break above that confirmed with daily close may sap sellers’ confidence and allow for a rise into 156.08-61 region, a would-be Double Top marked by swing highs in February 2018 and May of this year.