Cable Technical Analysis 31st March
The current GBP/USD price action is at the 61.8 percent Fibonacci level from the 1.6745 – 1.6056 move down.
Cable has formed a bearish engulfing bar on the daily time frame after a failed attempt at the 1.6500 level.
There have been four straight up days in a row excluding yesterdays bank holiday inside day with a 490 pip move higher since 24/5/2011.
This price action suggests there may be further GBP/USD downside potential if the daily low is taken out. Conservative traders will possibly be looking for additional bearish confirmation.