The GBP/USD extended its decline down to 1.6554 with the European opening, with dollar strongly up across the board. UK Construction PMI just released printed 64, the best level since January, with the employment component near record highs, giving GBP a short lived boost: the pair bounce up to 1.6577, but is already trading below mentioned low challenging key support around 1.6540.
The 4 hours chart shows a strong downward momentum with price accelerating below its 20 SMA, yet the key reading, is the strength of the retracement from the daily descendant trend line coming from this year high yesterday, which supports a continued slide in the pair. With several daily lows in the 1.6535/50 price zone, some consolidation around current levels should be expected before a break lower, yet once the support is taken, the slide can extend quickly towards 1.6490 price zone. If this last gives up, 1.6450 is next.
On the other hand, mentioned 1.6577 has become the resistance level to watch as only above it the pair may lose some of the bearish pressure. However, a sustained advance above it can lead to a test of the mentioned trend line, today around 1.6615.
View Live Chart for GBP/USD
The 4 hours chart shows a strong downward momentum with price accelerating below its 20 SMA, yet the key reading, is the strength of the retracement from the daily descendant trend line coming from this year high yesterday, which supports a continued slide in the pair. With several daily lows in the 1.6535/50 price zone, some consolidation around current levels should be expected before a break lower, yet once the support is taken, the slide can extend quickly towards 1.6490 price zone. If this last gives up, 1.6450 is next.
On the other hand, mentioned 1.6577 has become the resistance level to watch as only above it the pair may lose some of the bearish pressure. However, a sustained advance above it can lead to a test of the mentioned trend line, today around 1.6615.
View Live Chart for GBP/USD
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