GBP/USD has declined to 1.3700 as the US dollar has regained ground amid a downbeat market mood. Covid vaccine concerns and unresolved Brexit border issues continue to undermine the pound sterling. US Consumer Sentiment data is on tap today.
The 4H chart is showing that cable is off its highs, but remains in range. However, momentum has turned to the downside and the GBP/USD pair is back below the 1.3800 round mark. Bears are taking the upper hand.
Beneath the March low at 1.3670/63 would see the broader risk turn lower again with support then seen next at the September at 1.3641, then 1.3567. Whilst we would expect a hold here at first, below in due course can see a move back to the long-term base, potentially 1.3458/52
On the upside, any increase to 1.3919 which is needed to see a 'double bottom' base complete to reinforce our view the decline from the 1.4237 late February peak remains a corrective phase only within the core longer-term uptrend
Support awaits at the daily low of 1.3718, followed by the critical triple-bottom of 1.3670. Losing that line would open the door to a rapid fall toward 1.36. The esistance level is at 1.3750, a support line from earlier in the week, then followed by 1.3780 and 1.3810.
The material has been provided by InstaForex Company - www.instaforex.com