GBP/USD in a Pullback after a Bearish Breakout |
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GBP/USD
- The sterling failed to make a meaningful bullish attempt from the 1.6075 level after an ABC correction last Friday.
- Instead of making new highs, the market hammered at the support until breaking it today, and falling to the 200SMA in the 1H chart.
- 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.
- At the second half of today’s US session, we are seeing some pullback after the strong bearish candle from a little earlier.
- 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.
- The bearish outlook can extend lower towards 1.5780-1.58 area.
- However, an ability to stay defend 1.60 as support would be seen as a bullish sign as well, if then the market rallies above 1.6110.
- The bullish outlook is premature, but a break above 1.6250 in the short-term should trigger a medium term attempt towards 1.6550.
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