Cable (GBPUSD) breaks 2013 low to leave risk still lower
- A bearish outside Tuesday pattern through the cycle low at 14830 has reinforced a near term negative tone and shifted the intermediate term outlook to the downside.
- Although cautious, the risk into and through mid-July is for a better push below here and for extension to initially challenge the 78.6% retrace of the 2010-11 rally, 1.4765.
- The threat for July and into mid-Q3, however, would be still lower, to basing chart support targets at 1.4550/25, with Q3 overshoot risk back towards the 2010 secular low at 1.4225.
- Above 1.5130/40 eases the negative tone; only switching back to a neutral range theme above 1.5305.
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