GBP/USD sustains 1.5500 level

FXstreet.com (New York) - The GBP/USD foreign exchange rate has recovered off earlier lows at 1.5497, solidifying its stance on the 1.5500 barrier.

“Following the return back towards the 200-day MA, the GBP/USD pair has reached the end of the corrective move. Ultimately, a break below the 1.5425/1.5390 (38.2% retracement) is needed to alleviate topside pressure and signal a slide back to 1.5270 en route to 1.5155 (retracements of this recent leg higher) and base of the channel at 1.5035.” suggests Karen Jones, an analyst at Commerzbank.

At the time of writing, the GBP/USD has eliminated its European losses to return to opening levels at 1.5522/23 Monday. Given the recent performance of the pair, Mataf.net analysts point to the next level of resistive correction for the GBP/USD at 1.5619, then 1.5682, and finally 1.5748. On the decline, supportive structures will activate at 1.5490, ahead of 1.5424, and finally 1.5361.

Intraweek bullishness plausible above 1.5375 region
According to the Technical Analyst Team at ICN.com, “The GBP/USD technical pair is trading below 1.5605 after touching resistance level around 1.5685 last week. The drop is represented as weakness in the bullish momentum on momentum indicators, however linear regression indicators are still positive. The upside move is still valid as we are in front of more bullishness this week and remains valid by stabilizing above 1.5375 levels.”

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