Forex forecast

GBP/USD Current price: 1.4033

06.04.2016 17:55:45

The GBP/USD pair plummeted to 1.4004, as the Pound remains as the weakest dollar's rival. There were no macroeconomic releases in the UK, and won't be any relevant reading coming out until Friday, with industrial and manufacturing figures for March. From a technical point of view, the pair may see some upward corrective movement in the short term, as in the 1 hour chart, the technical indicators are bouncing from extreme oversold levels, but still far from suggesting an upward continuation. In the same chart, the 20 SMA has extended further its decline, and stands now in the 1.4130 region, providing a strong dynamic resistance in the case of a recovery. In the 4 hours chart, the technical picture favors the downside, given that the technical indicator keep heading lower below their mid-lines, whilst the 20 SMA has accelerated its decline below the 200 EMA. 

Support levels: 1.4000 1.3965 1.3930

Resistance levels: 1.4050 1.4090 1.4130