Forex forecast

GBP/USD Current price: 1.4179

05.04.2016 15:46:56

The GBP/USD pair extended its decline this Tuesday, and pressures 1.4170, Friday's low and the immediate support. The Sterling came under pressure after the release of the UK Services PMI for March, which resulted at 53.7, below the 54.0 expected, although above the previous 52.7. Also, weighing on Pound are lower oil prices, as the commodity returned to $ 35.00 a barrel on news an output freeze seems less likely. Technically, the 1 hour chart presents a strong bearish tone, as the technical indicators keep heading south, despite being near oversold readings, whilst the 20 SMA has turned south above the current level. In the 4 hours chart, the 20 SMA is crossing below the 200 EMA n the 1.4270 region, while the RSI indicator maintains its bearish slope well below its mid-line, supporting some additional declines for the upcoming hours.  

Support levels: 1.4170 1.4140 1.4100

Resistance levels: 1.4220 1.4270 1.4315