GBP/USD retreats from resistance within bearish trend
James Chen December 15, 2014 7:48 PM
<p>GBP/USD (daily chart shown below) tentatively retreated from key resistance around the 1.5750 price area on Monday. This short-term retreat occurs after a month-long trading […]</p>
GBP/USD (daily chart shown below) tentatively retreated from key resistance around the 1.5750 price area on Monday.
This short-term retreat occurs after a month-long trading range consolidation within a strong bearish trend that has been in place since the mid-July high of 1.7190.
The low of this bearish trend was 1.5540, hit only one week ago, which established more than a one-year low for the currency pair.
From high to low, the downtrend has declined by almost 10% thus far within the span of only five months.
Currently near its new lows, GBP/USD has followed a steep descending trend line since the beginning of the current downtrend in July. The 50-day moving average has also provided a key descending resistance line.
Still carrying a significant bearish bias, GBP/USD could soon be poised to break down below the noted one-year low, which would confirm a continuation of the bearish trend. In this case, the next major downside support target reside around 1.5400 and 1.5250.