The GBP/USD pair extended its decline down to 1.5234 in the European morning, level not seen since early June, as the UK macroeconomic data continues to show signs of economic slowdown.
British services PMI for August fell to 55.6, from 57.4 in July, growing at its slowest pace since May 2013, adding to the latest batch of negative data in the UK. Following Wednesday's upward corrective movement, the pair is back under pressure, with the daily chart showing that it continues posting lower lows and lower highs, reflecting the strength of the ongoing bearish trend.
Shorter term, the 4 hours chart shows that the pair has managed to bounce from its low, but the bearish trend prevails as the 20 SMA heads lower around 1.5330, providing a strong dynamic resistance in the case of further recoveries, whilst the Momentum indicator heads south well below its 100 level and the RSI indicator holds flat near oversold levels.
At this point, the price needs to advance beyond the mentioned 1.5330 level to be able to extend its intraday gains, with the next resistances at 1.5370 and 1.5420. Renewed selling interest below 1.5250 on the other hand, should lead to an approach to the 1.5200 level, whilst below this last, the next probable bearish target comes at 1.5165.
View the live chart of the GBP/USD
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