GBP/USD bearishness limited whilst above 1.5000 – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, views that GBP/USD bearish tone is limited, and the pair can advance to 1.5130/40 on a recovery above 1.5090, while a break below 1.5030 would target 1.4980/1.5000 area.

Key Quotes

“..the 4 hours chart showing a long lower shadow in current candle, reflecting some strong buying interest surging on approaches to the critical 1.5000 figure.”

“In the same chart, the 20 SMA maintains a strong bearish slope well above the current price, whilst the Momentum indicator presents a tepid bearish slope below 100 and the RSI resumes its decline after a limited upward corrective movement above the 30 level.”

“The overall tone is bearish, although limited: if the price recovers above 1.5090, it can extend up 1.5130/40 price zone, where Monday's high and the 20 SMA in the mentioned time frame should limit the upside.

“To the downside, the pair needs to break below 1.5030 to extend its decline towards the 1.4980/1.5000 price zone, with a downward acceleration beyond this last exposing the 1.4950 level.”

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