The pound has been floating around, moving more on Chinese news than anything else. Looking at the charts, what can we expect?
Here is what the team at Nomura has to say:
Here is their view, courtesy of eFXnews:
GBP/USD breakout above 1.5690 was viewed not only as a key pivot break but also a resolution of a bull triangle.
However, Nomura thinks that this move back below 1.5690 negates the breakout and leaves Sterling still mired in a multi-month range.
“S/t, the decline from 1.5819 is so far just 3-waves and could mark wave-(e) of the larger consolidation pattern; prices must hold above 1.5425 in order for this view to hold,” Nomura argues.
“Key to looking for another triangle breakout attempt is an initial move back above the 1.5700 zone,” Nomura adds.
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