GBP/USD attempts rebound within strong bearish trend
James Chen October 29, 2014 7:55 PM
<p>GBP/USD (daily chart shown below) continues to trade within a well-defined bearish trend that extends back more than three months to the mid-July multi-year high […]</p>
GBP/USD (daily chart shown below) continues to trade within a well-defined bearish trend that extends back more than three months to the mid-July multi-year high of 1.7190.
The deepest point of this downtrend thus far was the new 2014 low of 1.5873 that was established two weeks ago in mid-October. That low dipped slightly below a major downside target at the 1.5900 support level before rebounding.
Currently, the rebound from that low has been modest. Tuesday saw the currency pair rise to short-term resistance around 1.6180 and its 50-day moving average before retreating.
Wednesday’s Federal Reserve statement should help provide some further direction for the US dollar, which may affect the state of GBP/USD’s current rebound.
Despite the bounce, the currency pair continues to trade under pressure and carry an overall bearish directional bias.
With major upside resistance on any further recovery residing around the 1.6300 level, any re-break below the 1.5900 level should begin to target further downside support objectives around 1.5750 and then 1.5600.
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