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GBP/USD Remains at the Crossroad

GBP/USD 4H Chart 3/27

(click to enlarge)

After making a high at 1.5165 last week, GBP/USD has been coiling a bit and ended up consolidating under 1.50 with support sliding from 1.4850 down to 1.48 today. The 4H chart shows buyers at 1.48 trying to keep cable at the crossroads.

Now, the pressure is back on 1.50. If price breaks above 1.50, then there would be a near-term bullish bias towards the 1.5165 area, which is also near where the 200-period SMA resides.

Note that the RSI has not cleared 60, which reflects maintenance of the prevailing bearish momentum in spite of last week’s sharp spike. So, if price does not close above 1.50 to end the week, GBP/USD still have a bearish bias.

Failure to reach 1.50 could be a sign that bulls are exhausted in the near-term. The pressure would be on 1.48, then the 1.47 common support pivot, with risk of testing the 1.4635 low in an attempt to extend the prevailing downtrend.