Forex: GBP/USD bounces at Fibo 1.5820, stalls below 1.5860

FXstreet.com (Barcelona) - Currently at 1.5857, Cable is near session highs at 1.5861, resuming the bounce started from yesterday's lows at 1.5804, lowest level since late Aug 2012. The pair has found so far support around the key Fibo level around 1.5820, following the break down of its 200 day SMA on Friday, around the round figure 1.59.

According to Valeria Bednarik, Chief Analyst at Fxstreet.com: "In the hourly chart, technical readings hold the bearish tone, with indicators heading lower below their midlines and price below 20 SMA, yet is the daily chart the one actually interesting: the pair has a double top around 1.6300, with current 1.5820 being the neckline. The height of the figure is of around 470 pips, targeting then, 1.5350 area once complete. The downside remains short term favored as long as price holds below the 1.5900 price zone," Valeria says.

The analyst locates support levels at: 1.5820, 1.5770 and 1.5730, while resistance levels at: 1.5850, 1.5885 and 1.5915.