The Pound fell to a fresh weekly low of 1.5629 early Europe, following disappointing housing and services PMI data, although quickly recovered back higher, to trade inside these last days’ range. Hovering around 1.5660, the level represents the 38.2% retracement of this year fall that the pair regained past Friday on market optimism. In the 4 hours chart, the pair has also there the 200 EMA, giving further strength to the level: having attracted buyers since early week, now price struggles to recover above it, with the rest of the indicators turning slightly bearish.
Due to today’s holiday in the US, and the major events we are seeing tomorrow, market will likely hold in ranges, with the downside favored for the GBP/USD: as long as below 1.5660, downside target remains in the 1.5600/20 area, while below 1.5590 the rally could accelerate towards 1.5550.
Price now needs to recover above 1.5685 to signal a short term reversal towards 1.5720/30 price zone.View Live Chart for GBP/USD