Forex: GBP/USD deepens below 1.5500

Cable is down -0.24% for the week so far, last at 1.5480, and about -4.7% lower since year 2013 started. As CMT and FXstreet.com Independent Analyst Fan Yang notes: “There could be some reaction here, but there is still more room until key support in the 1.5250-1.5260 area. A bullish pullback is possible, but a break from a consolidation to the upside can make a stronger case since this upside outlook is against the trend since Dec,” the analyst says.

As for Valeria Bednarik, Chief Analyst at Fxstreet.com: “The hourly chart shows a slightly bearish tone as indicators head south below their midlines and price stands below 20 SMA, with immediate support at 1.5460, past Friday low. 4 hours chart shows 20 SMA gaining bearish slope above current price and acting as dynamic resistance, today around 1.5535, while indicators aim higher in negative territory: price needs then to break below mentioned low to be able to extend its slide with 1.5260/80 area now at sight,” she concludes.

Valeria finds support levels at: 1.5460, 1.5410 and 1.5370, while resistance levels at: 1.5510, 1.5535 and 1.5590.