GBP/USD Consolidates after Pull Back
James Chen June 8, 2015 7:14 PM
<p>GBP/USD (daily chart) has consolidated around the key 1.5250 support level after spending the past three weeks pulling back from its 2015 high of 1.5813 […]</p>
GBP/USD (daily chart) has consolidated around the key 1.5250 support level after spending the past three weeks pulling back from its 2015 high of 1.5813 that was reached in mid-May.
This pullback has given back almost half of the gains made during the recent rebound and partial recovery from April’s multi-year low.
Currently trading between its 200-day moving average to the upside and its 50-day moving average to the downside, the currency pair has been trading in a consolidation since its sharp pullback to 1.5250 support.
Still entrenched within a prolonged downtrend that originated from the 1.7190 high in July of last year, GBP/USD is displaying a bearish trend bias on both a longer-term and shorter-term basis. Lending to this bias is a bearish head-and-shoulders pattern that hints at a further potential breakdown.
Any sustained trading below the key 1.5250 support area could lead to this further breakdown and a subsequent targeting of downside support objectives at 1.5000 and then 1.4800.
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