Click to Enlarge
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
Price action on GBP/USD, a daily chart of which is shown, has continued its substantial bearish bias since the pair broke down below a key uptrend support line extending from a late-April low.
Currently, the bearishness is showing little sign of abating, and clear support targets to the downside include another uptrend support line, this one extending from the March low, as well as the 1.5800 horizontal support level.
At the current time, these two support factors are approximately coinciding. To the upside, key short-term resistance in the context of the current bearishness resides around 1.6200, or the previous short-term support level.
By James Chen, Chief Technical Strategist, FX Solutions
