GBP/USD continues retreat after downturn
James Chen August 30, 2013 9:03 PM
<p>GBP/USD (daily chart) has continued to fall back after having hit a two-month high at 1.5716 last week – just shy of the major 1.5750 […]</p>
GBP/USD (daily chart) has continued to fall back after having hit a two-month high at 1.5716 last week – just shy of the major 1.5750 resistance level – and then turning back to the downside. The resulting bearish retreat of the past week and a half has brought the currency pair back down once again to approach major support around the 1.5400 area, one of the most pivotal support/resistance levels for GBP/USD in recent weeks and months. The downward-sloping 200-day moving average also currently resides just under the 1.5400 support. With significant downside momentum currently prevailing for the pair, and renewed dollar strength tentatively in play virtually across the board, a key bearish indication would be a breakdown below 1.5400 support. This event would confirm a further bearish bias for the pair, with initial downside support objectives residing around 1.5250 and then the key 1.5000 psychological level.