GBP/USD: Bearish momentum below 1.5170

by Admin

Markets are finally back in full mode after a long holidays’ weekend, and news in the European front are far from encouraging. In the UK, consumer credit rose but mortgage approvals for house purchases fell for a second month in a row, and along with discouraging EU data, sent dollar higher across the board. 

The GBP/USD eased from 1.5260 area and approached the base of these last few days in 1.5170, immediate support level. The 4 hours chart shows price now below 20 SMA, while indicators head south and approaching their midlines, giving the pair a short term bearish tone. Still only a break below mentioned 1.5170 will signal a downward continuation in the pair, targeting in the short term the 1.5120/30 price zone. 

A recovery above 1.5220 will deny chances of further falls and see the pair recovering back towards the 1.5260 area. Fresh daily highs above this last should point for an advance towards next key resistance around 1.5310.

View Live Chart for GBP/USD