GBPUSD dropped below the 1.55 handle today after struggling to rise past Wednesday’s high of 1.5553. Resistance came at 23.6% of the Fibonacci retracement level of the upleg from 1.4564 to 1.5814, which has previously acted as support and resistance around 1.5518.
Near-term bias is shifting to the downside as the %D line of the stochastic oscillator is approaching to cross above the %K line. RSI is also weak as it trends down towards 50. Support is likely to come at 50% of the Fibonacci retracement level at 1.5189.
The medium-term outlook is still bullish though as prices remain above the 50- and 100-day moving averages. A break above the May 14 peak of 1.5814 is needed to sustain the upside momentum. But if cable is unable to hold above the 200-day moving average, this could weaken the bullish momentum enough to take it into a range.