FXStreet reports that Benjamin Wong, Strategist at DBS Bank, discusses GBP/USD prospects.
“Brexit concerns return. There remains a threat that the UK’s Brexit negotiator David Frost may trigger Article 16 (of the Northern Ireland Protocol). This has naturally drawn fire from both the European Union (EU) and the Irish. A suspension of what was agreed prior infers a UK-EU trade war, and is GBP negative.”
“The retreat is guided by a bearish triangle breakout, with the possibility of GBP doing a 38.2% Fibonacci correction of 1.1412-1.4248 (Covid flash lows to late-May highs), which calibrates at 1.3158. A move here has to contend with 1.3201 as well, which is currently the weekly Ichimoku’s cloud support. Additionally, we remain biased to turn long around the 200-week moving average 1.3166.”