Pound Sterling Price News and Forecast: GBP/USD reversal from 1.2350 extends to session lows at 1.2205
by FXStreet TeamGBP/USD outlook: Bull-trap formation threatens of deeper fall
Cable fell some hundred pips on Wednesday as traders booked profits from Tuesday's 1.2% rally, weakening near-term structure and shifting focus lower. Bull-trap pattern is forming on daily chart following unsuccessful attempts to clearly break above daily cloud, as the pair closed above cloud top on Tuesday but subsequent weakness on Wednesday already retraced over 61.8% of Tuesday's advance and touched cloud base. Rising bearish momentum supports scenario of return and close below the cloud that would confirm bull-trap and risk deeper fall towards 22 May trough at 1.2161.
GBP/USD extends losses and approaches 1.2200
The cable is dropping sharply on Wednesday, losing nearly 1% on the day after having peaked at 1.2353 to reach levels right above 1.2200. Investor’s concerns about negative interest rates in the UK and about the impact of the Brexit are punishing the sterling.