GBP/USD is on the verge of deeper bearish correction

By FXstreet.com | July 08, 2014 AAA

FXStreet (Moscow) - GBP/USD has recovered from Tuesday’s lows of 1.7080, but its mid-term horizon is still clouded

Hanging by a thread

GBP/USD continues its triumphant upside journey. The pair bottomed out and started its climbing higher in July, 2013, precisely a year ago. Since that time GBP/USD has gained nothing less than 2300 pips - amazing growth! Though now the pair has stalled at 1.7180/00 resistance, which means a period of sidelined trading is ahead. The cable has been supported by the idea that the Bank of England would be the first CB of the developed world to hike rates. It is still valid, but mostly priced in. What’s more, now FED is also supposed to start hiking rather sooner than later, thus GBP bulls might have harder time pushing the currency higher. From the mid-term perspective, the nearest strong support for GBP/USD is seen at 1.7080 (this week’s low), followed by 1.7008 (previous week’s low).

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.7122, with support below at 1.7096, 1.7058, and 1.7032 with resistance above at 1.7160, 1.7186, and 1.7224. Hourly Moving Averages are mixed, with the 200SMA at 1.7115, and the daily 20EMA flat at 1.7042. Hourly RSI is bullish at 50.

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