Forex Technical Update
The 1H GBP/USD is showing confirmation of the bearish outlook. After a break below the 1.5690 pivot the market was supported at 1.5612, the 61.8% retracement of the 1.5270-1.6165 swing. The corrective bounce was brief and respected the broken support of 1.5690 as resistance, thereby confirming the bearish outlook. Then in the US morning session, the market broke below the 1.5612 level, and cracked the 1.56 psychological pivot, suggesting further bearish extension.
In the short-term, further decline, perhaps toward the 78.6% retracement level at 1.5462 would be even more clear if a pullback fails to break above the 1.5620 pivot, allowing for a clear bearish impulse wave to develop. A break above 1.5620 adds noise, and a break above 1.5650 suggests we might need further sideways action, or even a corrective rally to test 1.5690-1.57 area as resistance again. A break above 1.57 puts away the bearish outlook, an introduces a reversal scenario to the upside.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources