GBP/USD extends the downside
GBP/USD edged lower from the Tuesday’s rebound to $1.5475 and is now renewing session lows below $1.5400. Yesterday’s candle with long upper shadow shows the bulls were not strong enough to fix above 23.6% Fibo from the recent decline ($1.5435).
Key support is now seen at $1.5380/70 (50% Fibo from the May-June rally, 55-day MA) and $1.5340. A decline below the last level would signal a continuation of a downtrend and open the way to our next bearish target of $1.5290 (61.8% Fibo from the May-June rally).
Great Britain is scheduled to release Financial Stability report (9:30 GMT) and government spending review (11:30 GMT). The BoE governor Mervyn King will make a speech on the BoE current outlook on the UK economy and the pound sterling.
Chart. H4 GBP/USD