FXStreet (Buenos Aires) – The British Pound is being dragged lower by broad dollar’s demand, with the GBP/USD pair gapping down around 50 pips at the weekly opening. Sentiment is selling off high yielders, with both the USD and the JPY up roaring.
The GBP/USD pair has a critical support at 1.5645, according to Valeria Bednarik, FXStreet.com chief analyst, as according to her view, “technically, the 4 hours chart shows a dominant bearish tone, with the price below its 20 SMA and the technical indicators turning lower and entering negative territory, with the price trapped between Fibonacci levels: the 23.6% retracement of the 1.5189/1.5929 rally stands at 1.5753 and has contained the upside for most of the last week, whilst the 38.2% retracement of the same rally is now a critical support level, at 1.5645. It will take a break below this last to confirm a bearish continuation in the pair down to 1.5560, the 50% retracement of the same rally.” According to her view, resistances are now at 1.5700, and 1.5750, the mentioned 23.6% retracement of the same rally.
(Market News Provided by FXstreet)