GBPUSD dropped below the 200-day moving average on renewed downward momentum. Regaining the 1.55 level looks difficult as the intra-day bias is bearish. RSI is indicating more downward pressure is to come and the stochastics chart shows the %K and %D lines levelling off around 20 but with little sign of upward momentum.
There are signs of weakening upside bias as prices have fallen to within the Ichimoku cloud and the tenkan-sen line is close to converging below the kijun-sen line. The 50-day moving average line is however holding above both the 100- and 200-day moving averages, suggesting a weakened bullish bias in the medium-term.
If prices continue to head lower, the 100-day moving average should provide support at 1.5255. A break below this level would likely shift the bias to a bearish one. On the upside, resistance would come from the 50-day moving average at 1.5519. Failure to rise above this level could hold the pair within a range and a break above it is needed to maintain the rally that started in mid-April.
Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.