GBP/USD: Back and forth around 1.5260

by Admin

The GBP/USD has been trading back and forth around the 1.5260 level over the last few days, unable to set a clear trend. Right in the mentioned area, the 4 hours chart shows 20 SMA and 200 EMA converging flat, a clear sign of the lack of momentum in the pair. Standing in between the 23.6% and the 38.2% retracements of the 1.6381/1.4830 fall, failure past week around the latest has increased the downward potential in the pair in the midterm. Still, the support around 1.5190 has triggered a strong bounce so far, and only below it the pair exposes to a steadier downside movement.  

As for the short term, the pair has been finding sellers around 1.5300, so only steady gains and even a pullback to the level should anticipate further gains up to 1.5350 price zone, where a short term descendant trend line offers resistance. A slide below 1.5240 should signal renewed selling interest, looking then again for the lows around 1.5190/1.5200.

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