GBP/USD Forecast: consolidating between Fibonacci levels


The GBP/USD pair consolidates in between Fibonacci levels and near a 3-week low, stuck around the 1.5400 level. There are no scheduled news in the UK for this Wednesday, and little relevant ahead in the US, which means the pair will probably trade based on sentiment and technical readings today, and therefore, the downside remains favored. 

The  4 hours chart shows that the 20 SMA heads sharply lower around the 1.5440/50 region, a few pips above the 50% retracement of the latest bullish run, while the technical indicators have turned back south after a limited correction in negative territory, of oversold readings, all of which supports additional declines. The price has bounced yesterday from its 200 EMA, a few pips below the 61.8% retracement both in the 1.5350 region, so it will take a break below this last to see the pair extending its decline towards the 1.5300 price zone, in route to 1.5260, a strong static support level. 

To the upside, 1.5440 continues to be the critical resistance, with a break above it required to change the bias towards the upside, eyeing as the immediate short term target the 1.5480/90 price zone.



View live chart of the GBP/USD


g







Recommended Content


Recommended Content

Editors’ Picks

AUD/USD risks a deeper drop in the short term

AUD/USD risks a deeper drop in the short term

AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.

AUD/USD News

EUR/USD leaves the door open to a decline to 1.0600

EUR/USD leaves the door open to a decline to 1.0600

A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.

EUR/USD News

Gold is closely monitoring geopolitics

Gold is closely monitoring geopolitics

Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.

Gold News

Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving

Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving

Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.

Read more

Is the Biden administration trying to destroy the Dollar?

Is the Biden administration trying to destroy the Dollar?

Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.

Read more

Majors

Cryptocurrencies

Signatures