With GBPUSD trading below 1.3658 levels, the pair remains vulnerable, further downside is likely in the day ahead, support lies at the 1.3450 levels. The GBPUSD will have to break and hold below the 1.3450 levels on a daily closing basis If seen the pair will face a corrective pullback threats to the 1.3395 levels with a break below here opening the way to the 1.3328 levels, further down, support stands at the 1.3266 levels ahead of the 1.3147 levels.
Minor resistance at 1.3497 levels, a 4-hour closing will turn the focus on the 1.3589 levels, further upside resistance at the 1.3658 levels, below 1.3497 will keep pushing towards the 1.3450 levels…
Alternatively, a failure to hold below the 1.3450 levels on a daily closing basis could mean a return to the 1.3551/1.3658 levels, a break will retire the upside momentum and turn the focus on the 1.3835 levels ahead of the 1.4000 levels.
Conclusion: The GBPUSD is likely to consolidate within 1.3450/1.3658 levels, below 1.3450 sees a corrective pullback risk above 1.3147 levels.
- The U.S will release data on Philadelphia Fed Manufacturing Index and initial jobless claims.
- The ECB President Mario Draghi will Speak at the 2nd ESRB annual conference in Frankfurt, Germany at 13:30 GMT.