GBP/USD not downside overdone?

By FXstreet.com | Updated July 25, 2014 AAA

FXStreet (Barcelona) - GBP/USD is trading at 1.6976, down -0.06% on the day, having posted a daily high at 1.7000 and low at 1.6961.

GBP/USD has been giving signs that the topside has been done for now and we are finding our way back into the long term range since the crisis in 2008. The excitement for breaking out has been dissipating as we grind lower and lower. However, The Market Strategy Team at UOB Group said they view the drop from the recent high of 1.7192 as corrective and they do not expect a sustained mid term GBP decline. “While further down-move is not ruled out, indicators are already approaching oversold and the next support zone at 1.6920/50 will likely be difficult to crack…In other words, while the immediate outlook for GBP is still considered as bearish, we are mindful that the current weakness could be close to an end. A break above the key resistant at 1.7095 would indicate that a low is in place and a move towards the recent high of 1.7192 has started”.

GBP/USD Levels

Current price is 1.6977, with resistance ahead at 1.6988 (Hourly 20 EMA). Next support to the downside can be found at 1.6951 (Daily Classic S1) and 1.6914 (Daily Classic S2).

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