FXStreet (Barcelona) – FXStreet Editor and Analyst, Omkar Godbole, sees downside potential for GBP/USD towards 1.5568-1.5570 area, with the pair failing to take out 1.5606 repeatedly on a daily basis.
Key Quotes
“The 4-hour chart shows the spot is moving in a falling channel, with 1.5515 and 1.5650 being the channel support and resistance levels today. The spot is stuck between 1.5606 (23.6% Fib R of Apr-June rally) and 1.5582 (5-DMA).”
“Given the bearish daily RSI, and the repeated failure to see a daily close above 1.5606, the pair could take out the support at 1.5582 (5-DMA) and drop to 1.5568-1.5570 (50-DMA).”
“Only a break below 1.5568 could see the pair fall to 1.5515.”
“On the other hand, a break above 1.5606 could see the pair rise to 1.5638-1.5650. However, it would take a better-than-expected UK industrial production report – both year-on-year and month-on-month and upbeat manufacturing production figures for the pair to rise to 1.5650 levels.”
(Market News Provided by FXstreet)