GBP/USD continues to consolidate roughly between 1.4840 and 1.4990 (we can just say 1.50). Let’s take a look at the charts for a technical assessment.
The 4H chart shows that last week, cable popped up from the low on the year at 1.4635 up to 1.5165 before coiling into the 1.4840-1.50 consolidation range. Note that the 4H RSI is still holding under 60, which reflects maintenance of the bearish momentum. Price action during the 3/26 European session so far has respected the 1.50 area as resistance. GBP/USD also looks like it is holding under the 100-period SMA.
Now, if resistance gets broken during the US session, GBP/USD has the bullish scenario at least to “chew through the tail” towards 1.5165. If price falls below 1.4835, we are likely going to see bearish continuation, which is actually the favored technical outlook based on the fact that the prevailing bearish momentum and bias are still in play in the 4H chart.
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