GBP/USD Might Struggle To Keep Going
Titan FX | Jul 22, 2015 12:12AM ET
Key Highlights
· British pound continued to weaken against the US dollar after failing to trade above 1.5680.
· There is a monster bearish trend line formed on the hourly chart of GBP/USD, which is acting as a resistance for the pair.
· There are a few major events lined up in the UK today, including the minutes of the BOE MPC meetings.
· Australian Consumer Price Index released by the RBA and republished by the Australian Bureau of Statistics posted a rise of 0.7% in Q2 2015, compared with the forecast of 0.8%.
GBP/USD Technical Analysis
The GBP/USD pair declined recently and fell close to the 1.5520 support area, where buyers managed to hold the losses. There is a bearish trend line formed on the hourly chart of the GBP/USD pair, which is acting as a barrier for the pair. Moreover, the 23.6% Fib retracement level of the last drop from the 1.5672 high to 1.5530 low is also around the same trend line.
One positive sign to note is that the pair is above the 200 hourly simple moving average, which might encourage buyers moving ahead. If there is a break above the highlighted trend line, then a move towards the 200 hourly SMA is possible. However, the most important hurdle in that situation would be around the 50% Fib retracement level of the last drop from 1.5672 high to 1.5527 low.
On the downside, the last low of 1.5530 may act as a support. A break below it could set the pace for more losses in the near term.
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