GBP/USD opened Monday’s trade at 1.6105, broke below key support in the 1.6075 area to hit session lows near 1.6000 and has recovered some of its daily losses, hovering now just above the 200-day EMA.
“Note the RSI reading finally broke below 40 to kill the bullish momentum, and even shows some short-term bearish momentum as the reading kissed 30,” explains Fan Yang, Chief Technical Strategist at FXTimes. “At the second half of today’s US session, we are seeing some pullback after the strong bearish candle from a little earlier.”
Mr. Yang continues: “If the market fails to break above 1.6075 in the Asian session, and can avoid breaking back above the 1.6110 level in the upcoming European session (in about 12hours), then the bearish outlook is still valid, at least in the very short-term towards 1.5930-1.5940 area.”
At the time of writing, GBP/USD has closed the American session at 1.6055, around 50 pips below its starting price. If the cross continues its descent during the Asian trade, Slobodan Drvenica of Windsor Brokers Ltd. expects buying interest at 1.6050, 1.6030 and 1.6000. To the upside, he recognizes resistance at 1.6127, 1.6164 and 1.6192.
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