Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Technical Analyst, Saxo Bank
GBPUSD is taking lows at dropping below 1.14 and is now trading in territory not seen since 1985! Back then GBPUSD was spiking down to around 1.05 before Central banks joined together to lift it.
Will they come to rescue this time around?
If GBPUSD closes the week below 1.14 and RSI closes the week below its rising trendline there could be more downside in store for GBPUSD.
The latest correction here in Q3 has reached 1.764 projection and could short term extend to 2.00 projection i.e., 200% of the correction peak and trough, at 1.1226.
However, looking at the entire 2020-2022 up-and down move 1.382 Fibonacci projection of that is 1.0323.
To reverse this very bearish picture GBPUSD needs to close above 1.2295.