GBP/USD: Downtrend persists, but is now mature - Westpac

According to strategists at Westpac, the downtrend from 1.70 in the GBP/USD pair remains in place and it could extend to 1.10-1.14, but they warn that is now mature. 

Key Quotes: 

“Downtrend persists, but is now mature. A turn (for broad consolidation) is yet to develop The downtrend from 1.70’s remains much in place and could extend to 1.10-1.14 area, but it is also clearly maturing.”

“Monthly momentum is low, but not genuinely turning. A genuine turn is needed to confirm that the mature downtrend is in fact complete and that a base has formed.”

“Weekly momentum has risen into neutral areas but price action remains that of standard/minimal corrections of the preceding decline. Rebounds are still seen as selling opportunities, even if the downtrend is maturing, for a potentially final flush to affirm a base.”

“Rebounds may have been more persistent than expected, but appear to have confirmed range resistance in the 1.26-1.28 area. The roll over in short term momentum means that the depth of near term dips will be critical in determining whether range trading persists.”