The weekly chart shows us the historical record decline that took place in the pound-dollar exchange rate, and we find the price is currently trading at levels below the 113% Fibonacci located at 1.3680, this may be a reason for the extension of the downside move over intraday basis.
Target level located around 1.3105, but only to prove for that we need stable trading below 1.3513. Technical indicators are very negative, and supportive of the extension of the down wave. However, we recommend taking positions for traders who are unable to take high risk. Negative condition will continue as long as the pair trading below 1.4565.
- Support: 1.3700 – 1.3510 – 1.3105
- Resistance: 1.3900 – 1.4000 – 1.4300
Direction: negative below 1.3680, targeting 1.3105 and 1.3000, as long as trading below 1.4000
The euro fell against the US dollar strongly, and we find it is currently trading below the rising trend line, while trading above the 50% retracement of 1.1065.
However, the possibility of extension of the downside trend will remain intact as long as the pair is trading below price 1.1200, but warn that the sharp volatility may make the risk/return ratio not suitable for most traders. Therefore, we recommend caution, and advised to avoid trading in the financial markets until conditions stabilize.
- Support: 1.0755 – 1.0935 – 1.1000
- Resistance: 1.1360 –1.1200 – 1.1135
Direction: negative below 1.1200, targeting 1.0940 and 1.0755, as long as trading below 1.1355