The outlook for GBPUSD stays bearish and though, because of approaching psychological ranges of 1.5500, some sideways trading over 1.5600 level cannot be ignored but overall we expect deeper moves in the coming days.
On the upside we expect resistance near 1.5727 or the high of May 24th but a break of that will confirm the recent continuous resistance of 5-day EMA and such a case may bring some more upward move to test the previous resistance of 1.5848.
On the downside a break below 1.5600 will not only break the fear of the psychological ranges of 1.5500 but will also represent the break below March 13th’s support level. Such a break should take GBP/USD towards 1.5500 psychological levels, after a minor resistance near 1.5520 and then possibly towards 1.5450/1.5480. Not only this level represents the next Fibonacci retracement support of the upward move from January 14th to May 1st but please note that near this range the support of the lower trend line of the GBPUSD triangular channel will come into picture. A decisive break of this will be required to expect a retest of the low of January 14th i.e. 1.5233.
On the upside if the currency pair manages a break over the resistance of 1.5848 then the next resistances should be in the range of 1.5920 to 1.5940. This range would represent the resistance of Kijun line of daily Ichimoku cloud and 55-day EMA resistance.
1) GBP/USD daily technical analysis.
2) Weekly outlook of GBP/USD.
3) Fundamental outlook of GBP/USD.
4) Technical outlook of GBP/USD.
5) EUR/USD Outlook and forecast.
6) USD/CHF outlook and forecast.
Connect the author at Google: +Himanshu Jain