Sterling finds support at a key level.

Some will tell you than all the news is “baked into the price” of an asset. Stocks, crypto and even currencies. And for the Pound Sterling, there has been an overabundance of “bad news” from high inflation, a power emergency this winter, to Brexit to a rotating Prime Minister (and I am sure I am forgetting a few things). However, the Cable has finally reached some key levels tested in 2016 during the Brexit vote fallout, the Covid lows from 2020 and then today. Is this the low? I’m not sure, but with the pair at channel support, testing the 161% golden Fibonacci ration (161% extension of the mid July to mid August move) and an oversold and divergent RSI, we may get a dead cat bounce at least to the 1.1750 level near term.

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