Forex Technical Update
The 1H GBP/USD chart reflects a bearish bias as a the market respected the 200 hour simple moving average, staying under the 50% retracement level (of the 1.6066 to 1.5808 swing), and followed with a downswing in the 4/10 Asian-European session that broke the very short-term rising channel. This can be interpreted as a sign of bearish continuation.
However, the bearish scenario has another technical challenge. Entering the 4/10 US session, the market is near last week's low of 1.5808, and now close to a rising trendline seen in the daily chart. There is also a support pivot at 1.5775, which is near the 1.5778, 61.8% retracement of the 1.56-1.6066 swing.
Thus this 1.5775-1.58 area is an important support zone to monitor. If the market does respect this support cluster, we can see a push toward 1.60, 1.6066. A break below 1.5770, opens up 1.5650, 1.56 key support pivots.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes and IBTrade will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.