The British Pound has lost its shine and falls strongly, with the GBP/USD pair down to 1.5143 at the beginning of the European session. The pair has advanced strongly last Friday, ignoring the slump in oil prices, and extending up to 1.5239, with no clear catalyst behind the move. Anyway, the current retracement seems more related to some profit taking ahead of the US Federal Reserve meeting, than an actual reversal in the dominant bullish trend.
Technically, the 4 hours chart shows that the price is holding around its 200 EMA, and a bullish 20 SMA, pressuring the 1.5150/60 support. In the same chart, the technical indicators turned south, with the Momentum indicator crossing its 100 level towards the downside, but with no strength at the time being, whilst the RSI indicator heads south around 54. A new leg lower through the mentioned support should lead to a quick test of the 1.5100 figure, with a break below it having strong bearish implications, and pointing for a decline down to 1.5050.
Some steady consolidation above 1.5200 is required to revert the intraday negative tone, and see the pair advancing up to 1.5240/60.
View the live chart of the GBP/USD-------
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