GBP/USD: a pause in decline
GBP/USD is trading on the upside after it found support around $1.5170. The pair has reached $1.5272 today. Britain’s unemployment data came better than expected (the number of people claiming unemployment-related benefits contracted by 7.3K, while the jobless rate declined by 7.8%). In addition, the Bank of England released an upbeat inflation and growth report. A bit later disappointing US data weakened USD.
Resistance lies at $1.5270, $1.5300 (psychological level) and $1.5355/70 (top of the daily Ichimoku Cloud, 55-day MA). Support is at $1.5170, $1.5128 (61.8% of the March-May advance) and $1.5100 (psychological level).
The decline from $1.5607 top is still in place. Analysts at Barclays remain bearish as long as GBP/USD is trading below $1.5400. Still, the pair’s oversold in the near term, so there may be some more of the pullback up, so one should looking for the opportunities to go short, probably starting at $1.5300.
Chart. Daily GBP/USD