Sterling Corrects To Key Fib Level with Bearish Candle Formation

Tracing a forth wave of correction, cable continues to fall under heavy selling-pressure displaying a 3 black crows (bearish) candle formation. Technicians have touted sterling as top-heavy all the way up to its 26-year high of $2.0654.

[I][U]Technical:[/U][/I] [B]GBP/USD[/B]
[B]Resistance: 2.0400
Support: 2.0200[/B]
Now retracing, chartists overlay Fibonacci Retracement levels to forecast the amplitude to a more pronounced fall. RSI readings convey a largely oversold environment, which varies widely with speculative positioning data which expresses extreme long sentiment. Looking forward to next week, prudent traders will monitor cable price action nearing key psychological such as $2.0200 using the round confluence in conjunction with Fibonacci support levels to decipher the next possible leg of the correction.

See [B][I]Daily Technicals[/I][/B] for more details