City: GBP/USD to decline to $1.6800-$1.6750
Currency strategists at CitiFX note that the GBP/USD upside remains limited by the $1.7130/80 resistance. The recent cable’s upside was too rapid and is not anymore supported by surprisingly strong economic data.
In their view, we’ll see a bearish correction into the $1.6800-$1.6750 area in the nearest future. Break below there could provoke a decline to $1.6300 (55-week EMA and the 2012 highs).
CityFX analysts point that the current GBP/USD trend is very similar to the one we’ve seen in the year 1992, when the pound retraced up for 68 months after a sharp drop. These days GBP/USD has already been recovering for 66 months.
According to analysts, only a close above $1.7180 could open the way for further GBP/USD growth.
Chart. Monthly GBP/USD