The consolidative phase in the GBP/USD pair continues this Thursday, with the pair still stuck below the 1.4200 figure, and near the almost 6-year low posted at 1.4124. The pair is expected to post a limited reaction to the ECB decision, and continue subdued to risk sentiment. There are no macroeconomic releases scheduled for today in the UK, which means market's attention will turn towards the US Philly manufacturing index and weekly unemployment claims to seek for direction.
In the meantime, the 4 hours chart shows that the price remains below a bearish 20 SMA, now offering an immediate resistance at 1.4210, while the technical indicators are now flat below their mid-lines, having corrected the extreme oversold readings reached earlier this week. In the daily chart, the extreme oversold conditions prevail, with the RSI indicators heading south around 17, still unable to confirm an interim bottom.
A recovery above 1.4210 may see the pair correcting up to 1.4250, the immediate resistance, followed by 1.4290. It would take a daily close above this last to see the pair extending its corrective movement for a couple more sessions. Below 1.4125 on the other hand, the decline could extend initially to 1.4070/80, whilst further declines will result in a test of a the 1.4000 figure.
View the live chart of the GBP/USD
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