Currency Analyst since 2010

GBP/USD is supported near $1.5000

GBP/USD dropped to a 10-week low at $1.5013. Market players are waiting for the release of the revised UK GDP at 08:30 GMT. According to the consensus forecast, British economy added 0.3% in Q1 matching an initial estimate on published on April 25. Later today the volatility will increase due the release of unemployment claims and new home sales in the US.

Yesterday sterling breached 61.8% Fibo of the March-May advance and today tested 76.4% Fibo at $1.5015. There’s still divergence on H4 MACD and the pair’s oversold in the short term. The key support is at $1.5000 and it may hold in the European session. Further support is at $1.4980, $1.4900 and $1.4830 (March low).

Resistance is at $1.5050, $1.5100, $1.5150 and $1.5220. We'll think of re-entering shorts above $1.5100. Advance above $1.5320 is needed for the bulls to feel comfortable again.

Chart. H4 GBP/USD

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