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GBPUSD Testing Key Support From Rising Support Trend line

GBPUSD : Daily Chart

GBPUSD today extended losses after the upbeat US GDP data. The growth in the US economy is back to the 2013 highest level now. On the daily chart, the pair is testing the key support at the rising support trend line. The pair might continue to extend losses as investors are currently bullish on US dollar and wanted to lock gains ahead of the FOMC statement releasing today at  2:00 PM EDT.  If it continues to decline the next support it will find at 1.6846 where 100 day SMA is also acting as a support. Declining below 100 day SMA might show some bearish outlook on the pair. GBPUSD will only be able to hold gains when the expectation of an early rate increase from Fed fades away. 

GBPUSD : Daily Chart

However if inserting a Fibonacci retrenchment levels on the chart, the pair is still above the 23.6 fib level. The pair might rise once it reaches this level.  Also 100 day SMA might prevent the pair to fall further down. If the pair continues to decline the next support level would be at 38.2 fib level. I would be bearish on the pair only if it declines below the 200 day SMA otherwise the pair still have chances that it might come back to its previous levels.