GBP/USD Technical Analysis Forecast

gbpusd-technical-analysis

The GBPUSD has broken below key trendline support which has been in place since May 2010 low (1.4226). The pair has struggled to hold above its 200 day SMA on several occasions last week. In addition remaining below 16260 keeps the head and shoulders chart pattern on the daily intact..

Given the weight of evidence we remain bearish on the pair and would expect significant falls going forward, with a longer term projection of Dec 2010 lows at 1.5340.

However in the immediate term, expect the potential for some unwinding of recent falls. 1.6200 (or ultimately 1.6260) should cap any consolidation in the pair.

On the downside, a move below 1.5875 should see falls accelerate.

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