FXstreet.com (Barcelona) - After tumbling from 1.6376 in the American session, the GBP/USD has been trading in a narrow range between 1.6190 and 1.6220. Currently the pair is trading around 1.6195/1.6205, 0.50% below today's opening price action at 1.6285.
According to the FastBrokers Research Team, the GBP/USD declines with broad-based Dollar strength: The Cable has dipped below key November lows and is presently approaching our 2nd tier uptrend line. Hence, a downward pressure remains on the Cable. That being said, the currency pair does have our 1st and 2nd tier uptrend lines serving as technical cushions along with the psychological 1.60 area should it be tested. As for the topside, the Cable faces multiple downtrend lines due to recent weakness. Additionally, the Cable has 12/07 and 12/04 highs serving as technical barriers along with the psychological 1.65 level.
Valeria Bednarik, collaborator at FXstreet.com affirms: Upside movements could be consider corrective after last days´ fall. Recovery also has been stalled at the 61.8% retracement of last down leg in 4 hours charts, and indicators in the hourly seem exhausted to the upside and pointing for further falls after breaking also under the 38.2% of the mentioned rally. Crossing 20 SMA to the downside, pair could fell to 1.6160 lows if 1.6200 area gives up quickly.