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