On the daily chart the main GBP/USD currency pair is starting to show signs of saturation over the rally that occurred over the previous few days, as reflected in several things:
1. 1.2296 is difficult to break upwards
2. The appearance of the Bearish = Rising Wedge pattern.
3. Formation of a Bearish pattern 123.
4. The appearance of Bearish Wiseman 1 & 2 signals.
Therefore, in the next few days, as long as Cable does not reverse its rally up above the 1.2344 level, this major currency pair still has the potential to depreciate to the 1.2045 level as its main target and if the decline has quite high volatility then it is possible that the 1.1777 level will become next target to go to.
(Disclaimer)
