GBP/USD maintains bearish trend bias
James Chen March 27, 2015 6:15 PM
<p>GBP/USD (daily chart shown below) continues to maintain an overall bearish trend bias despite last week’s spike. That rebound attempt was prompted by a swift, […]</p>
GBP/USD (daily chart shown below) continues to maintain an overall bearish trend bias despite last week’s spike. That rebound attempt was prompted by a swift, but short-lived, US dollar plunge that occurred after last week’s Fed meeting.
The spike hit a high of 1.5166, which was just under the 50-day moving average, before quickly retreating and entering into the current consolidation just above multi-year lows.
On the same day of the spike, a new four-year low of 1.4633 was established, which extended the sharp downtrend that has been in place for the past eight months since the July 2014 high of 1.7190.
Currently range-trading between key 1.5000 resistance and 1.4800 support, the currency pair continues to be weighed down within the entrenched bearish trend.
Any re-break below 1.4800 support could pressure GBP/USD towards its next downside target around the 1.4500 support level.
Below the 1.4500 target lies a further downside objective at the pivotal 1.4250 support level, which was last hit in mid-2010.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.