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Forex forecast

GBP/USD Current price: 1.4510

05.05.2016 15:23:34



The GBP/USD pair fell down to 1.4438 this Thursday, but dips in the pair ever since the day started have sent the pair quickly back towards the 1.4500 mark, with the pair unable to clearly break below the 50% retracement of the latest bullish run. Data coming from the UK continued disappointing, as the April Markit services PMI came un at 52.3, below previous and expected, and the weakest reading in over three years. The 1 hour chart shows that the price is now aiming to recover above a flat 20 SMA, whilst the technical indicators aim higher within neutral territory, lacking enough strength to confirm a stronger advance. In the 4 hours chart, the Momentum indicator continues heading south near oversold territory, while the 20 SMA extended its decline above the current level, maintaining the risk towards the downside. The RSI indicator, however, bounced modestly, limiting the downside at the time being. The 38.2% retracement of the same rally stands at 1.4515, the level to overcome to see the pair advancing further. 

Support levels: 1.4450 1.4410 1.4375

Resistance levels: 1.4530 1.4580 1.4620

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