GBP/USD Makes Slim Recovery Attempts

GBP/USD Makes Slim Recovery Attempts

GBP/USD Open 1.5743 High 1.5774 Low 1.5691 Close 1.5761

On Tuesday Pound/Dollar recovered insignificantly with 80 pips. The Cable appreciated from 1.5691 to 1.5774 yesterday, in line with the positive money flow sentiment at over +10%, closing the day at 1.5761. Today the British Pound is trading quietly, with movements at the upper end of yesterday's range for the time being.

On the 1 hour chart the downward channel looks good, while on the 3 hour chart new downward channel has formed. First resistance is yesterday's peak at 1.5774. Break above it should extend the bullish movement further towards 1.5900. The nearest support level is yesterday's bottom at 1.5691. Going bellow it should extend British Pound's reduction further down towards next downward objective 1.5570.

Today are UK Nationwide house price index, M4 money supply, and Consumer credit, all at 09:30 GMT.

Quotes are moving in line with the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term neutral and medium term bearish pressure. The value of the RSI indicator is neutral and calm, MACD is negative and tranquil, while CCI has thinly crossed up the 100 line on the 1 hour chart, giving over all neutral signals.

Technical resistance levels: 1.5774 1.5900 1.6033
Technical support levels: 1.5691 1.5570 1.5438