The GBP/USD pair fell down to 1.5179 this Tuesday, from where the pair posted a tepid bounce, finding limited support in positive UK data. According to the latest releases, the construction PMI for May surged above expected, reaching 55.9 against 55.0 expected and 54.2 previous. Mortgage approval and consumer credit also rose beyond expectations in the same month, and alongside with broad dollar weakness, is helping the pair to advance beyond the 1.5200 level.
Nevertheless, the 4 hours chart shows that gains are being quite limited, as the dominant bearish trend prevails. In the mentioned chart, the 20 SMA maintains a strong bearish slope around 1.5260, also a strong static resistance level, whilst the RSI indicator is barely bouncing from oversold levels, and the Momentum indicator aims slightly higher below 100, all of which keeps the upside limited. At this point, only a steady advance beyond the mentioned 1.5260 level will favor additional gains towards the 1.5300/30 price zone.
Failure around the level, or renewed selling pressure below the 1.5200 level on the other hand, should lead to a downward continuation towards the 1.5150 level, whilst a break below this last exposes the 1.5100 figure for the upcoming hours.
View live chart of the GBP/USD
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