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GBP/USD Approaching Key Support

GBP/USD has been bullish February, rallying from 1.50 to 1.5550. It also just came off the January low and low on the year around 1.4950. At the turn of the month however, cable retreated and continued to slide this week. 

GBP/USD 4H chart 3/4
(click to enlarge)

The 4H chart shows the pair falling towards a key support area between 1.53 and 1.5315. As the 4H RSI approaches 30 as well, if we see a bullish divergence, we should respect the support area and look for a rally at last back towards a resistance pivot area between 1.5440-1.5480. 

A hold above 1.53 keeps a bullish bias in the GBP/USD, though we would call it neutral-bullish since it has already lost its bullish momentum as the 4H RSI falls below 40 and price below the 100-, and 50-period SMAs, though it is still above the 200-period SMa. Now, if price does rebound and fails to push above 1.5480, then we can start to turn bearish as the pair would be developing a head and shoulders pattern. 

A break below 1.53 first opens up a support/resistance pivot around 1.52 before opening up to the 1.4950-1.50 lows on the year.