The GBP/USD pair hovers around the 1.5700 level this Monday, holding pretty well to market chaos. An early gap saw the pair falling down to 1.5663, but it was quickly filled and the pair continues to trade directionless, in between Fibonacci levels. In the data front, UK mortgage approvals fell in May from an over a year high. The decrease is being attributed to higher prices and less offer in the housing market, overall negative for Pound.
Nevertheless, the 4 hours chart presents a neutral technical stance, as the Momentum indicator holds horizontal around the 100 level, whilst the price stands around a mild bearish 20 SMA. The RSI indicator in the same chart, looks more bearish, heading lower around 40. Still the pair has to break below 1.5645, the 38.2% retracement of the latest bullish run to confirm a downward acceleration, eyeing then a 100 pips decline towards the 1.5550 region, 50% retracement of the same rally.
Selling interest is aligned at 1.5750, the 23.6% retracement of the same rally that capped the upside for most of the last week, so it will take a clear break above it to confirm a bullish extension, up to the 1.5800/10 region.
View live chart of the GBP/USD
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