GBP/USD pulls back further as rebound weakens

<p>GBP/USD (daily chart shown below) has continued to pull back from its late February 1.5551 high, as the month-long rebound that started in late January […]</p>

GBP/USD (daily chart shown below) has continued to pull back from its late February 1.5551 high, as the month-long rebound that started in late January has further weakened.

That rebound brought the currency pair up from its late January long-term low of 1.4950, slightly under key 1.5000 support, up to the noted February high.

In the process of rebounding, price action broke out above a major downtrend line extending back to the July 2014 high of 1.7190, as well as the 50-day moving average.

GBP/USD daily chart


Now that GBP/USD has retreated significantly from its February rebound high, the currency pair could be poised to resume its entrenched bearish trend.

The next major downside target resides around the key 1.5250 support level, where the 50-day moving average also currently resides. Any breakdown below that level could push the currency pair back down towards major 1.5000 psychological support.

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