Quarterly Outlook
Investor Outlook: Beyond American shores – why diversification is your strongest ally
Jacob Falkencrone
Global Head of Investment Strategy
Technical Analyst, Saxo Bank
If GBPUSD closes around current levels (around 1.07) or higher it would have formed a Hammer candle (Small body with lower shadow at least 2-3 times as long as the body and no or very short upper shadow) on the daily chart. It would be an indication of a bottom and reversal that can initiate a rebound to around 1.1065 i.e. the 0.382 retracement of the past two months of sell-off.
BUT market is still open and the picture can change.
If GBPUSD at the end of today’s price range – or lower – more down side is like. Parity would be in sight.
Weekly RSI has broken its rising trend and made a new low supporting a continued bearish outlook.
Q3 Macro Outlook: Less chaos, and hopefully a bit more clarity