gbp-usd

GBP/USD: The market has finally taken out the key October lows just over 1.5700 to likely open the door for some medium-term setbacks over the coming weeks. However, daily studies are now looking quite stretched and there is the strong risk for a material corrective bounce before any additional weakness can take place. As such, look for a push back towards the 1.6000 area from where a lower top will carve out ahead of eventual bearish resumption and fresh declines towards critical psychological barriers at 1.5000. A break above 1.5775 is required to take pressure off of downside, while next key short-term support comes in at 1.5500.

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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