The GBP/USD pair consolidates in between Fibonacci levels and near a 3-week low, stuck around the 1.5400 level. There are no scheduled news in the UK for this Wednesday, and little relevant ahead in the US, which means the pair will probably trade based on sentiment and technical readings today, and therefore, the downside remains favored.
The 4 hours chart shows that the 20 SMA heads sharply lower around the 1.5440/50 region, a few pips above the 50% retracement of the latest bullish run, while the technical indicators have turned back south after a limited correction in negative territory, of oversold readings, all of which supports additional declines. The price has bounced yesterday from its 200 EMA, a few pips below the 61.8% retracement both in the 1.5350 region, so it will take a break below this last to see the pair extending its decline towards the 1.5300 price zone, in route to 1.5260, a strong static support level.
To the upside, 1.5440 continues to be the critical resistance, with a break above it required to change the bias towards the upside, eyeing as the immediate short term target the 1.5480/90 price zone.
View live chart of the GBP/USD
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