Bulls in GBP/USD Remain Uncertain

The FX Specialist view - An earlier recovery in GBP/USD this year, off a 76.4% support area, came to a halt in August, again at a Fibonacci retracement. So far a s/term pullback has been supported by a 38.2% level, but there is currently risk that this could give way in due course.

• WEEKLY CHART: The rebound off a 76.4% pullback area has found clear resistance from the 61.8% recovery level. This means that the market has also failed to hold above resistance from the second low that stands out from 2009, the 1.5705 Oct-09 low. The main question now is whether or not bulls have had their day.
• DAILY CHART: The recent slip back from the 61.8% recovery level found temporary support from the 38.2% pullback. The current s/term chart structure suggests that the decline could have an impulsiveness that will see a failure of this support, so any rebound may prove short-lived... Other than deeper retracements we would then also look for possible support from around the prior 1.4780 01-Mar low.

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