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GBP/USD Makes New Lows on the Year

Last week, after GBP/USD broke down a triangle support, it was in a bearish continuation mode. This week is starting with cable falling to new lows on the year at 1.4564. Let's take a look at the charts.

GBP/USD 4H Chart 4/13
(click to enlarge)

The 4H chart shows the bearish continuation finding near-term support at 1.4564 in the 4/13 US session. There is a bullish divergence in the 1H chart. If we do see a pullback, limit the bullish outlook to the 1.4750-1.48 area, which was a previous support area.

A break above 1.48 might suggest further consolidation, but there will still be a bearish bias in the medium-term.

GBP/USD Monthly Chart 4/13

(click to enlarge)

Otherwise, the trend remains bearish and is poised to continue towards the 2010 lows around 1.4226. We can see this in the monthly chart.