Technical Outlook: Sterling is carving out the July opening-range just above technical support at 1.3734/42- a region defined by the 88.6% Fibonacci retracement and the April low-day close. Note that a possible five-wave decline has been identified off the yearly highs and highlights the risk for a near-term correction / recovery in the British Pound. Outside-day reversals off the monthly lows & highs have already granted merit to this range and we’re on breakout watch in the days ahead. Critical support rests just lower at the confluence of the yearly open / March & April lows / Brexit gap-level at 1.3646/75 – a break / close below this threshold would likely fuel another bout of accelerated losses with such a scenario exposing the 1.35-handle.
