The GBP/USD pair trades within a tight range around the 1.5600 level, having posted a daily low of 1.5587, still finding some buying interest but unable to pick up on broad dollar strength. There were no macroeconomic news in the UK, but the US calendar will be pretty busy, with the release of the Advanced GDP reading for the Q2 and a new figure, the Goods trade balance.
The 4 hours chart shows that the pair has managed to bounce from a bullish 20 SMA that advanced above a horizontal 200 EMA, this last, reflecting the lack of directional strength, whilst the RSI indicator heads higher around 56 and the Momentum indicator is flat above 100, keeping the risk towards the upside. At this point, the price needs to extend beyond the 1.5630 level to be able to advance towards 1.5670, albeit selling interest will likely cap the upside around this last.
Towards the downside, a downward acceleration through 1.5590 should lead to a test of 1.5550, whilst below this last, 1.5510 is the next bearish target for the day.
View live chart of the GBP/USD
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