GBP/USD is on the verge of deeper bearish correction

By FXstreet.com | Updated July 30, 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.

Related Forex Analysis
  1. Weekly Forecast: FX Volatility to Persist on Key Data, Rate Decisions
    Forex News

    Weekly Forecast: FX Volatility to Persist on Key Data, Rate Decisions

  2. British Pound Holds on by a Thread - What to Watch in Week Ahead
    Forex News

    British Pound Holds on by a Thread - What to Watch in Week Ahead

  3. GBP/USD bounces at 1.5940 and returns to 1.5990
    Forex News

    GBP/USD bounces at 1.5940 and returns to 1.5990

  4. GBP/USD slumps to 1.5950
    Forex News

    GBP/USD slumps to 1.5950

  5. GBP/USD retreats from above 1.6000
    Forex News

    GBP/USD retreats from above 1.6000

Trading Center