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GBPUSD : Not Able to Hold Above the Rising Support Trend Line, Bearish Trend Persists

GBPUSD : 4 Hour Chart

Pound today breaks down below the rising support line which prevented the pair in declining couple of times earlier also. On the 4 hour chart, the pair is currently testing the key support at 1.6285. The next support level pair may find if it continues to decline is at 1.6204. The decline came as the demand for US dollar continued to be supported by the expectations among investors that Fed might increase the interest rates soon. The confidence built up after the release of upbeat New Home Sales data yesterday. The pair was earlier trying to revive as the rising trend line on the chart supported the pair.

GBPUSD : Weekly Chart

 On the weekly chart, we can see that the pair declined below the key support at 1.6311 which earlier acted as resistance also. This support might now again act as resistance if the pair is not able to hold above it. The next support level pair may decline to, is at 1.5886. So the bearish trend continues to dominate the pair as it has now again turned towards negative territory.

The investors will be looking closely at the US data releasing today (Durable goods Orders & Unemployment Claims) at 8:30 AM EDT. BOE governor Mark Carney's speech might also bring some volatility in the pair as investors tries to draw inference about the economic recovery and future plan of actions.