GBP/USD: Bearish below 1.5260

by Admin

The GBP/USD consolidates yesterday losses, trading in a tight 50 pips range between 1.5270 and 1.5315 area, unable to establish above 1.53, despite risk off trading eased with the European opening. The 4 hours chart maintains a bearish outlook,  with indicators leading lower in negative territory, although 200 EMA stands in the way: the dynamic support is now around 1.5260, and the pair needs to break below it to confirm a downward short term continuation towards 1.5220, 23.6% retracement of the last daily fall. Below the Fibo, a daily ascendant trend line 100 pips lower comes next.

To the upside, 1.5340/60 area has prove strong over the last few days, and will likely attract sellers if reached. Only steady gains above that area should favor further recoveries eyeing then 1.5410/20 price zone.

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