Notes: The British Pound posted an outside-weekly reversal candle off the yearly highs this month with the decline now taking prices towards a critical support confluence at 1.3675-1.3737 – a region defined by the 23.6% retracement of the 2017 advance, the 2016 high-week close (Brexit), and the lower median-line parallel of the longer-term pitchfork formation we’ve been tracking since last year. A weekly close below this threshold would invalidate the broader uptrend in cable with such a scenario targeting the 2017 high-week close at 1.3494.
Bottom line: It’s make-or-break here for the British Pound with the immediate short-bias at risk here while above key longer-term uptrend support. A weekly close below would suggest a larger-scale pullback is underway with such a scenario targeting the 2017 high-week close at 1.3494 backed by the 52-week moving average at ~1.3400.
