The GBP/USD pair consolidates around the 1.5400 level, holding pretty fair against the latest dollar's strength. The pair suffered a kneejerk on Thursday, falling down to 1.5368, a fresh weekly low, after the ECB announced it may expand its assets purchases or lower its interest rates further into negative territory. The slide has been limited however, by market's belief that the BOE will tightening its economic policy during the first half of next year, which widens the imbalances between the kingdom and the rest of Europe.
With no macro data scheduled for today in the UK, the 4 hours chart for the pair shows that it has bounced from its 200 EMA, and holds above the 50% retracement of its latest weekly decline at 1.5380, the immediate support. In the same chart, the 20 SMA heads lower above the current level, whist the technical indicators lack directional strength below their mid-lines. Additionally, the pair has been unable to advance beyond 1.5415, the previous weekly low, all of which should maintain the risk towards the downside.
A break below the mentioned Fibonacci support then, the pair may decline down to 1.5320/30, although buying interest on dips remains strong and selling seems not the favored trade. Above 1.5415, the pair can extend up to 1.5445, a strong Fibonacci resistance, and it will take a break above this last to see the price extending up to the 1.5500 price zone.
View the live chart of the GBP/USD
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