The rally of the US dollar on Thursday pushed cable below 1.5400. The decline so far found support around 1.5380, that is where the lower limit of an upside channel is located. The GBP/USD pair continues to move within the bullish channel despite the retreat.
Currently is testing a key short term support around 1.5380, a consolidation below could weaken the pound further; below targets are located at 1.5340 and 1.5310; then comes a strong support at 1.5270/80.
Price has fallen below short term moving averages and technical indicadores suggest that weakness could continue the coming hours. The positive for the bulls is that price still holds above the 200-MA and within the channel. The trading zone around 1.5360/80 is proper for a rebound considering that is an important dynamic support area; the first signal would be if it climbs above 1.5420 where the hourly 20-MA is located. Initially the rebound should be limited below 1.5470; if GBP/USD rises back above 1.5470 it should open the doors for a test of weekly highs.
View Live Chart for GBP/USD
Currently is testing a key short term support around 1.5380, a consolidation below could weaken the pound further; below targets are located at 1.5340 and 1.5310; then comes a strong support at 1.5270/80.
Price has fallen below short term moving averages and technical indicadores suggest that weakness could continue the coming hours. The positive for the bulls is that price still holds above the 200-MA and within the channel. The trading zone around 1.5360/80 is proper for a rebound considering that is an important dynamic support area; the first signal would be if it climbs above 1.5420 where the hourly 20-MA is located. Initially the rebound should be limited below 1.5470; if GBP/USD rises back above 1.5470 it should open the doors for a test of weekly highs.
View Live Chart for GBP/USD
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