GBP/USD: technical update
GBP/USD dropped by more than 100 pips to $1.5620 on Tuesday. Yesterday the cable touched a 4-month high of $1.5750.Today’s report showed UK CPI accelerated in May for the first time since February.
RBS: The double top figure with a bearish turn in major oscillators and looming hanging man candlestick pattern suggest it might be a turning point now. If so, the target levels will be $1.5500 and $1.5400. A sustained break above $1.5740 would negate this view.
UBS: Yesterday the pair posted a new recovery high. Our focus is on the strong resistance at $1.5790. A closing break above this would be further positive opening $1.5880. Support is at $1.5615.
Chart. H4 GBP/USD