GBP/USD: bears pressure not easing
Tatiana Norlina, FBS analyst
Yesterday's trading has again proved that the bears are still disposed towards further decline of the currency pair rate. After a short testing of the Tenkan-Sen line, prices continued falling and returned to the last week's lows of 1.5600. The Ichimoku indicator negative trend is strengthening once again: Senkou Span A cloud is extending downwards; Tenkan-Sen is fixing the current dead cross.
However, there is a slight difference in prices with the MACD Histogram - there has formed a divergence warning of a possible consolidation at the current levels before updating the lows.
Apart from that, formation of a reversal Morning Star candlestick, with due acknowledgment, can provoke bulls to short-term buying. Therefore, total attention of market participants will be drawn to the 1.5600 figure. If consolidating above - we will be on the bulls side, which is yet quite a risky venture. Otherwise, let us expect the pair in the 1.5500 area.
Technical levels: support – 1.5500, 1.5600; resistance – 1.56350.
1. Sell – 1.5630; SL – 1.5650; TP1 – 1.5500; TP2 – 1.5410.