GBP/USD Forecast: wait and see mode


The GBP/USD pair trades uneventfully above the 1.5100 level, having saw a short lived spike early in the European session up to 1.5150. There are no macroeconomic news in the UK scheduled until Wednesday, when Britain will release its Service PMI figures. Anyway, market's eyes are on upcoming general elections next Thursday, and there's little to expect from the pair until then.

The technical picture favors the downside, as the 4 hours chart shows that the 20 SMA declined further above the current level, now around the 1.5220 level, whilst the technical indicators stand directionless near oversold levels. The pair posted a daily low of 1.5088, and a break below it could see the pair falling down to the 1.5050 region on dollar's strength. Should 1.5050 give up, the next bearish target stands at 1.5020. To the upside, the pair needs to advance beyond 1.5160 to be able to extend up to the 1.5200/20 region, where selling interest is expected to contain it.

View live chart of the GBP/USD
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