Royal Bank of Scotland - "Consecutive weeks of ‘lower lows’ and ‘lower highs’ in GBP/USD; the bias strongly remains that rallies should be sold and the downside target remains the 1.53 level.
Despite last week having a positive open/close range I note with particular ‘technical’ interest that the market failed at the 1.5829 level and that this week a lot of those gains are quickly already undone!
My expectation remains much the same for GBP/USD of over the medium term; price action to stay heavy and range bound. 1.5964/6072 should provide the ceiling and the supports remain at 1.5600 and 1.5300. I’d still be more inclined to sell rallies than buy dips for now.
Should I be wrong and the market trade above the 1.5964/6072 ceiling then the 1.6300 and1.6816 levels are the ones to focus on."