The GBP/USD pair had some good two-way price swings on Monday and finally settled nearly unchanged for the day, forming a Doji candlestick pattern on the daily chart, as NDDFX’s analyst Haresh Menghani notes.
“The cable’s inability to register any meaningful recovery further suggests that the near-term selling pressure might still be far from being over.”
“A convincing break through the 1.2200 mark will add credence to the bearish outlook and set the stage for additional declines towards the 1.2140-30 horizontal support. The downward momentum could further get extended towards testing sub-1.2100 levels before the pair eventually falls towards challenging the 1.20 mark.”
“On the flip side, any attempted recovery now seems to confront some fresh supply near the 1.2300 round-figure mark, above which the positive move could get extended towards the 1.2350-60 supply zone.”