- The attempt to recover the GBP / USD fails to extend beyond 1.2340 and the pair falls to test support at 1.2247.
- Below 1.2245, the pair could confirm a double peak formation at 1.2645, targeting the 1.1845 area.
The rebound in the British pound from its low of 1.2247 on Tuesday was short-lived. The pair peaked at 1.2340 on Wednesday, accelerating its slowdown as the American dollar picked up after Fed Powell’s comments rejecting negative interest rates, which pulled the pair lower, to break the 1.2247 level for the first time in the past five weeks.
If the pair manages to break the mentioned 1.2245 (April 21 and May 12 low), it could confirm a double high at 1.2645 (April 14, 30 high) and accelerate its downward trend towards 1.2165 (April 6 low. ) and 1.2035 (50% retracement of the rally from March to April) on its objective of double net objective 1.1840.
On the upside, the GBP / USD should return above 1.2340 (intraday high) and 1.2375 (April 12 high) to ease the current downside pressure, and focus on 1.2465 / 75 ( highs of May 5 and 8) and finally the peak of the last trading week at 1.2645.