FXStreet (Barcelona) – Valeria Bednarik, Chief Analyst at FXStreet, notes GBP/USD technicals remain in favour of a downside move, and only above 1.5610/20 will revert the bearish tone.
Key Quotes
“The GBP/USD pair trades lower in range, having set a fresh 3-week low of 1.5527 before bouncing up to the 1.5600 region early Europe. The British Pound has been holding pretty fairly to the ongoing risk aversion environment, as the UK economy continues to give signs of economic recovery.”
“Nevertheless, the short term technical picture for the pair favors a downside breakout, as the 1 hour chart shows that the 20 SMA presents a bearish slope above the current price, whilst the Momentum indicator turned lower around its mid-line, and the price is unable to recover above the 50% retracement of its latest bullish run.”
“In the 4 hours chart the technical picture also favors the downside, with the RSI flat around 3 and the price developing below its 20 SMA and the 200 EMA. At this point, only a recovery above 1.5610/20 will be able to revert the intraday negative tone, and favor a recovery up to the 1.5650/60 region.”
“Support levels: 1.5520 1.5170 1.5130”
“Resistance levels: 1.5570 1.5620 1.5660”
(Market News Provided by FXstreet)