GBP/USD: bearish view
This week was negative for the cable: the pair dropped by 350 pips after having touched a fresh 3-month high at $1.5750 (bottom of the weekly Ichimoku) on Monday. On Friday cable is consolidating in the $1.5530/5470 area following the yesterday’s dip to a two-week low of $1.5415.
We recommend selling the pair on rallies. As can be seen from the weekly chart, a weekly close below the $1.5513 level (last week’s open) would confirm a bearish engulfing candle, signaling a trend reversal to the downside. Key support is now seen at $1.5400/5380 (50% Fibo from the recent rally).
Support: $1.5400/5380, $1.5335, $1.5300.
Resistance: $1.5500, $1.5523, $1.5590/5600, $1.5625, $1.5650
Chart. Daily GBP/USD