Sterling Finds Support Which Could Increase Bullish Potential

The GBP/USD continues to find support at 1.5000-the psychological level has been threatened and the longer it continues to hold the greater the bullish potential for the pair. Breaks below have failed at 1.4873-61.8% Fibo of 1.3514-1.7046 which could prove to be formidable support. A break below there would justify a short position with potential to 1.4500 where we see former congestion. The longer-term trend remains to the downside which increases the risks for a long position. For those with a higher level of risk tolerance, the recent failure at support opens the door for a small retracement to test 1.5198-5/8 high with the 20-Day SMA at 1.5297 as the next barrier.