GBP/USD Forecast: little aims to go lower

The Pound retreated from its highs around 1.4500 against the greenback, down to 1.4409 with the European opening, where some short term buying interest has surged. The American currency is generally higher across the board, but the movements look barely corrective at the time being, after the sharp moves seen during the past two days.

The UK calendar will remain empty today, but at least three FED members will offer different speeches during the American session, and may trigger some moves across the board, alongside with the Michigan consumer sentiment index.

In the meantime, the pair holds around 1.4440, the 61.8% retracement of this year decline, and shows little aims to decline further. In the 4 hours chart, the Momentum indicator has resumed its advance within overbought levels, while the RSI is consolidating around 66, suggesting that the risk remains towards the upside. Renewed buying interest around 1.4460 can see the pair retesting the 1.4500 region, with an extension beyond 1.4510 probably signaling a continued advance up to the 1.4550/70 region.

Below the daily low, on the other hand, the pair may extend its decline down to the 50% retracement of the mentioned rally at 1.4325.

View the live chart of the GBP/USD

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