Previous: GBP/USD at Another Support Cluster in the 1.5770-1.58 Area (5/17)
GBP/USD 4HChart 5/22/2012 6:54 AM EDT
During the 5/21 session, the market consolidated as EUR/USD, AUD/USD, NZD/USD and other USD-crosses displayed USD-weakness for 1 session. GBP/USD however held to a narrow range seen in the 1H chart staying below 1.5850 and the 100-hour simple moving average.The RSI reading stayed below 60, showing maintenance of the bearish momentum.
There was support at 1.5780. The 5/22 European session brought about a bearish swing that is now breaking below 1.5780 as we gear up for the 5/22 US session. The RSI is falling back below 40, showing re-emergence of bearish momentum, especially if it dips below 30.
The test of last week’s low at 1.5735 is imminent, with downside risk to 1.5650-1.5660 area if that breaks.
Join the Market Intelligence Briefings to get, technical setups, trade plan and management strategies for the GBP/USD, and other currency pairs.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.