The GBP/USD pair remains subdued, trading below the 1.5400 figure this Tuesday, having set a daily high at 1.5396 on the back of dollar temporal weakness amid the RBA decision to remain on hold. But ever since the European session started, the greenback regained the upside, with the pair falling as low as 1.5360 so far in the session, despite up beating UK data. Construction PMI in the kingdom showed that growth jumped to a 4-month high in January, reaching 60.1. If something, the figure is helping the pair to avoid a stronger slide.
Technically, the 4 hours chart shows that the price continues to develop below a strongly bearish 20 SMA, currently offering dynamic resistance around 1.5410, whilst the 200 EMA stands as a critical support around 1.5335. The technical indicators in the mentioned time frame head lower below their midlines after correcting oversold readings, supporting some further declines particularly if the price accelerates below the mentioned 1.5335 level. The immediate short term target comes then at 1.5290, followed by 1.5250, a strong static support level. To the upside, the pair needs to advance above 1.5420 to be able to extend its gains up to the 1.5450/60 price zone, although selling interest should cap the pair around this last.
View Live Chart for GBP/USD
Technically, the 4 hours chart shows that the price continues to develop below a strongly bearish 20 SMA, currently offering dynamic resistance around 1.5410, whilst the 200 EMA stands as a critical support around 1.5335. The technical indicators in the mentioned time frame head lower below their midlines after correcting oversold readings, supporting some further declines particularly if the price accelerates below the mentioned 1.5335 level. The immediate short term target comes then at 1.5290, followed by 1.5250, a strong static support level. To the upside, the pair needs to advance above 1.5420 to be able to extend its gains up to the 1.5450/60 price zone, although selling interest should cap the pair around this last.
View Live Chart for GBP/USD
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