De La Rue is coming near to the resistance and could be driven in a correction phase.

From a fundamental viewpoint, analysts have largely revised downward their EPS estimates during the year. This situation could feed some profit taking in the short run.

Technically, the bearish trend dominates in the medium and the short term. Prices are currently in contact with both GBp 592.5 resistance and a downward trendline. Moreover, indicators highlighted an overbought situation in recent sessions. This indicator shows a limited potential for a possible recovery.

The technical configuration and fundamentals lead us to predict a consolidation phase, at least in the short term. The GBp 592.5 should play its full role and to stop the upward trend initiated in the short term. Therefore, to take advantage of this technical correction, a short position may be opened in the current area to target GBp 550.5 and then GBp 516. In case of further acceleration, the stop loss will be triggered above the GBp 592.5.