The GBP/USD pair however, is bouncing after the release of the UK BBA mortgage approvals data, showing that mortgage approvals rose in June around 8% compared to a year before. Nevertheless, the pair remains below 1.5500, the 50% retracement of the same rally.
Technically the 4 hours chart shows that the bearish momentum prevails, as the price extended further below a bearish 20 SMA, whilst the technical indicators continue to head south well below their mid-lines. Should the price extend below the mentioned Fibonacci support, the decline will likely accelerate towards the 1.5400 region, whilst below this last, 1.5360 comes next.
At this point, only a clear recovery above the 1.5500 level can help easing the negative pressure, and send the pair back up towards 1.5545, the 38.2% retracement of the same rally.
View live chart of the GBP/USD
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