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GBP/USD Might Struggle To Keep Going

Published 07/22/2015, 12:12 AM
Updated 07/09/2023, 06:32 AM

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.

GBP/USD Hourly Chart

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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