Forex Technical Update

Previous: GBP/USD Sliding Sharply but Topping Yet to be Confirmed (11/15)

GBP/USD

GBP/USD

The 4H GBP/USD chart shows the pair establishing bearish stance. The RSI dipped below 30 after failing the break below 40 during the range-bound market from Oct 24 - Nov 15. The market is also now trading below the 200 period simple moving average in the 4H chart. Further confirmation of the bearish intent would be given if upon a pending pullback, the market respects the 1.59 level as resistance. This opens up the 1.5680-1.57 support area.

Below that the 1.5612 level is 61.8% retracement of the 1.5270-1.6166 swing. If this is also cleared, and the market dips below 1.56 handle, we open up 78.6% retracement at 1.5462 and the low at 1.5270.

Recent economic releases and fundamental factors for the UK adds extra pressure on the Sterling.

GBP/USD

Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources