GBPUSD is giving a bearish tone. The RSI is in bearish territory below 50 and trending down, which is suggesting there is further downside momentum. The alignment of the 200, 100 and 50-day moving averages and the fact they are all sloping downwards, are bearish signals.
After prices attempted to bounce higher from multi-year lows of 1.4078, strong resistance was found at the 50-day moving average and prices reversed back down from 1.4667. A drop below the key psychological level of 1.4500 strengthened the downside bias.
The break of key 1.4350 support yesterday lead to a sharp drop and could signal that the corrective move has ended and GBPUSD has resumed its recent downtrend. The immediate target is for a move to the key 1.4200 level with a probability for a retest of the 1.4078 low.
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