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GBPUSD Finally below 1.7102, But Still Remain Supported

(GBPUSD : 4 Hour Chart)

GBPUSD finally broke down below the key support it was experiencing at 1.7101. The pair was consolidating within a descending triangle which signals a bearish trend and the pair declined below breaking the support of the triangle. The 50 day SMA also seems reversing its direction and heading down towards the 100 day SMA. The next support the pair should find is at 1.7062 which was previously acting as resistance for the pair. The decline started after the UK construction output fell by 1.1% in May which was the biggest decline since February. Last week a separate report showed that the manufacturing production in U.K. fell by 1.3% in May which was the fastest decline in 16 months. Seems like the weak data is pushing the investors to shrug off long positions on Pound.

(GBPUSD : Daily Chart)

If looking at the daily chart of GBPUSD, the moving averages are still heading upward in the same direction and we can see that there is a rising support trend line. The pair will find the nearest support from the previous resistance. Thus the pair still seems bullish and it will show the bearish trend only if it declines below the rising support trend line.