According to FXStreet Editor and Analyst, Omkar Godbole, the GBP/USD pair is likely to test 1.5221 levels, with technicals supporting the bearish view.
Key Quotes
“The GBP/USD pair ended lower on Friday at 1.5236 after having failed to extend gains above the 10-week SMA.”
“A weak attempt to take back losses was made in the Asian session today, although gains were capped at 1.5268 levels.”
“Meanwhile, the hourly chart shows, the pair is struggling to sustain above the 23.6% retracement level on the hourly chart located at 1.5259 levels.”
“The hourly RSI, at 45.26, is pointing to a further downside in the pair. Thus, the pair is more likely to test the 1.5221 levels; which is the neckline support of the inverted head and shoulder formation.”
“A break below 1.5221 shall open doors for a inverted head and shoulder target of 1.51 levels.”
“However, losses are likely to be capped around 1.5180-1.5160 levels.”
“On the other hand, a fresh demand for Pounds can be seen above 1.5280 (hourly 50-SMA). In such a case the pair could rise to 1.5340 levels.”
Key Quotes
“The GBP/USD pair ended lower on Friday at 1.5236 after having failed to extend gains above the 10-week SMA.”
“A weak attempt to take back losses was made in the Asian session today, although gains were capped at 1.5268 levels.”
“Meanwhile, the hourly chart shows, the pair is struggling to sustain above the 23.6% retracement level on the hourly chart located at 1.5259 levels.”
“The hourly RSI, at 45.26, is pointing to a further downside in the pair. Thus, the pair is more likely to test the 1.5221 levels; which is the neckline support of the inverted head and shoulder formation.”
“A break below 1.5221 shall open doors for a inverted head and shoulder target of 1.51 levels.”
“However, losses are likely to be capped around 1.5180-1.5160 levels.”
“On the other hand, a fresh demand for Pounds can be seen above 1.5280 (hourly 50-SMA). In such a case the pair could rise to 1.5340 levels.”
