GBP/USD slid to 6-week low
GBP/USD fell by more than 100 pips today and slid below the daily Ichimoku Cloud ($1.5170). Pound declined as Britain released lower-than-expected CPI figures (inflation declined from 2.8% to 2.4%) which allow the Bank of England to add stimulus.
The next support levels are found at $1.5130 (61.8% Fibo of the advance from March to May) and $1.5100 (psychological level). H4 chart shows that the pair may be now due for some correction: there’s divergence on MACD and the prices slid to the lower Bollinger band. Resistance lies at $1.5170, $1.5220 and $1.5270.
Tomorrow there will be more volatility ahead of the latest MPC minutes and retail sales data. US dollar, in turn, will be vulnerable ahead of the FOMC minutes and Bernanke’s speech.
Chart. H4 GBP/USD