GBPUSD bearish trend extension threat
· We stated in our recent report to clients that “we still look for upside to be capped by 1.6890/95, but for the recent low at 1.6813 to try to hold on Wednesday” and we see risk for similar activity Thursday (with the trend line now at 1.6875).
· However, the recent push below 1.6835, the 38.2% retrace of the 2014 up leg reinforced the prior break of 1.6952 and the trend line from Feb and leaves risk lower.
· Into mid-August, we see risk for the 1.6800 retrace/ impulse low and modest 1.6740 prop, but, overshoot risk is now likely lower to the key 1.6695 swing low.
WHAT CHANGES THIS?
· Above 1.6895 eases bear risks; through 1.7055 signals a neutral tone, only shifting positive above 1.7095.
Download our full report with latest screencast & levels here: http://members.marketchartist.com/Daily/GBPUSD.pdf