The British Pound capitulated to dollar strength, and the GBP/USD pair fell down to set a fresh 3-week low of 1.5383, from where it quickly bounced up to 1.5422. Nevertheless, the pair continues to trade below the 1.5400 level and below the 50% retracement of its latest daily bullish rally between 1.5088 and 1.5814 around 1.5440, the level that contained the downside for the last two weeks.
Technically, the 4 hours chart shows that the price approaches the 61.8% retracement of the same rally around 1.5370, whilst the technical indicators head sharply south below their mid-lines, supporting additional declines, particularly if the mentioned Fibonacci support gives up: below 1.5370, the pair will likely extend its decline down to the 1.5320/30 price zone, whilst below this last, the next strong static support level stands around 1.5260. The pair needs to recover above the 1.5440 level to shrug off the negative tone and be able to resume the upside, up to the 1.5480 price zone.
View live chart of the GBP/USD
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