Today, the GBP/USD rebounded, as the USD fell across the board. This can be attributed to a slew of ugly US data on inflation, retail sales, and manufacturing. However, we should not be so quick to jump away from USD-strength, which has the GBP/USD falling persistently. Let’s take a look at where there might be sellers in the GBP/USD.
GBP/USD is just coming off a bearish continuation attempt, and today’s rally is a test of this bearish continuation scenario. So far, we are already seeing sellers. The soft US data is not enough to weaken the greenback significantly against the GBP. Maybe we can expect some further upside in the near-term. bit of price approaches 1.61, and the 4H RSI approaches 60, get ready for a bearish continuation attempt. A break above 1.6150 might shelve the bearish outlook. Otherwise, this bearish outlook as a support pivot at 1.5854 in sight, then the 1.57-1.5750 area, which is the resistance of a double bottom in 2013.
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