GBP/USD: Double floor may come to play

by Admin

The GBP/USD has retested the 1.5070 area, and managed to bounce higher despite worse than expected UK data, with Business Investment and the Index of Services missing expectations. The upward correction so price stalling around 1.5160, 20 SMA in the 4 hours chart that keeps capping the upside; momentum reached the 100 level and slowly turns lower, while RSI remains in negative territory. The dominant trend continues to be bearish, yet a short term upward corrective movement could take place, mostly if the neckline of the double floor at 1.5220 is overcome, towards the 1.5260/80 price zone. Selling interest should resume below 1.5300.

Failure to break higher and retracements below 1.5120, will on contrary point for a bearish continuation, with 1.5070 and 1.5030 as short term targets for today.

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