GBP/USD Forecast: Downside breakout below 1.5667 expected – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, sees downside potential for GBP/USD towards 1.5606.

Key Quotes

“At the moment, the pair is trading at 1.57, with the hourly and 4-hour RSI hovering below 50.00 levels. The 5-DMA at 1.5710 is likely to cap the immediate gains.”

“On the hourly time frame, the pair has repeatedly failed to take out the 200-MA resistance, while the downside has been capped around 1.5667 levels.”

“Given, the repeated failure to take out the hourly 200-MA and close above 1.5749, the pair could witness a sell-off that could lead to a break below the support at 1.5667 and push the spot down to 1.5606 (23.6% Fib R of 1.4564-1.5928).”

“On the higher side, a re-test of 1.5649 could be seen, although the outlook stays bearish so long as the pair fails to see a daily close above 1.5749.”

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