Previous: GBP/USD Continues Downtrend, Breaking Below Key Levels (1/12)
GBP/USD
The GBP/USD has broke below 1.53 in the 1/12 session, but found support at 1.5278 (there is still one last pivot at 1.5270 to break below the bottom opens up). Since finding support, the market rallied in an ABC correction where C and A are almost the same lengths (C is a tad longer). This ended up being rejected at a declining trendline seen better at the 4H chart below, respecting the 50-61.8% retracement area. The candlestick that showed the rejected was a very heavy bearish candle (almost a marabuzo if not for a tiny tail at the bottom).
A break below 1.53 again and a push of the RSI back below 40 are signs of bearish continuation, but as noted before, a break below the final 1.5270 pivot will open up the bottom. The next support pivot is seen near 1.48, established February/March of 2010.
Fan Yang CMT is the Chief Technical Strategist FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources
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