GBP/USD: fresh lows, scope to test 1.5260 area

by Admin

The GBP/USD fell to a fresh 7 month low in the European morning, reaching 1.5436 before bouncing slightly higher. However, bears are still leading the way in the pair, as the 4 hours chart shows 20 SMA strongly bearish above current price and technical indicators heading back south after an upward corrective movement that erased oversold readings. The pair may see some consolidation with the US on holidays today, but the downside continues to be favored even on recoveries up to 1.5510, where the pair will fill the weekly opening gap.

Renewed selling pressure that drives price below 1.5440 support, should open doors for a bearish short term continuation towards 1.5400 area first, and 1.5360 later on the day. On the longer ride, the pair continues targeting the 1.5260 area, June 2012 low.

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