Forex: GBP/USD sideways with negative bias above 200-day EMA

FXstreet.com (San Francisco) - GBPUSD lost ground for five consecutive days and has dropped around 0.9% over the mentioned period of time. "For the short term, the hourly chart maintains a more neutral stance, with indicators around their midlines and 20 SMA flat," explains Valeria Bednarik, Chief Analyst at FXstreet.com. "Still unless a clear recovery above 1.6020/30 price zone, the upside will likely remain limited."

Spot seems to have found support in the 200-day EMA, having dipped to as low as 1.5953 yesterday, and now trades a tight range between 1.5960 and 1.6005 ahead of the European session when UK retail sales are on offer at 09:30 GMT. Should GBPUSD manage to push above the 1.6020 mark, Bednarik identifies resistance at 1.6060. If spot breaks below the overnight low, further support may be found at 1.5920 and 1.5880.