GBPUSD: Reversal in the medium term range – Lloyds Bank

Research Team at Lloyds Bank explains that after having failed to hold gains above 1.26, yesterday’s weakness – possibly related to the progression of Scotland’s request for another independent referendum – extended overnight for GBPUSD.

Key Quotes

“We have dipped below pivot support at 1.2450-1.2400 adding to the bearish sentiment. Daily momentum studies had warned of reversal in the medium term range, and a decline through 1.2360/50 support would add conviction for a re-test of the range lows. Below there, supports now lie at 1.2305/00 and 1.2250/20. Resistance is at 1.2480, 1.2560/70 then 1.2645.” 

“Long term, we believe the decline that started back in 2007 at 2.1160 is close to completing with the move under 1.30. While it is unclear that 1.1491 was the major base, 1.15-1.08 is our ideal ultra-long term basing region.”