GBPUSD  Forecast

The GBPUSD also had significant bullish momentum yesterday after the joint intervention by China and some developed countries central bank to easy liquidity by cutting RRR and swap rates by 50bps. Price broke above 1.5700, topped at 1.5778 and now struggling around 1.5700 which is the 38.2% Fibonacci retracement of 1.6165 – 1.5422 as you can see on my h4 chart below. I doubt that the current risk appetite sentiment will extended, but my short term technical bias remains bullish testing 1.5800 – 1.5875 resistance area. Technically speaking, I see no reason not to think about a potential bullish reversal scenario. Immediate support is seen around 1.5650. A clear break below that area would lead price to a neutral zone in nearest term but need at least a clear break back below 1.5600 – 1.5570 to keep the bearish scenario intact testing 1.5500 – 1.5422 support area.

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