Chart and commentary is a snippet from Lloyds Bank ahead of the Bank of England meeting today (note from London morning 2 August 2017 - Lloyds nailing the resistance level...)
- Prices are consolidating around recent highs, suggesting that another new high can be achieved ahead of the BoE ...
- However, we still see the 1.3255/65 region as strong resistance.
- A decline back through 1.3160-1.3115 support is needed to suggest that a broader correction phase is underway, with 1.3050-1.2985 support below.
- Long term, we believe we are in the final stages of the cycle that started back in 2007 at 2.1160. We are still monitoring price action to determine whether the 1.1490 "flash crash" move was a significant low, or not. Even if that is the case, over the medium term we look for a range, although that range seems to be shifting from 1.20-1.30 up to 1.25-1.35.
