With the risk aversion sentiment driving the market, the Cable has been weakening as well, breaking below 1,60 and now testing July low at 1,5780.
It is worth noting that the pair has been resilient to the US Dollar bounce and it is still evolving in a weekly range. A break and close below 1,5780 though would definitly validate a shift in the trend.
Next target to the downside is given by the December low at 1,5350 corresponding to a congestion area. We hold a bearish bias on the pair for the weeks ahead.
Provided by atf-forex-trading.com