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GBP/USD Can Remain Bullish Above 1.53

The USD gained across the board last week, and even the recently resilient British Pound fell against the mighty greenback. Take a look at the 4H chart. 

GBP/USD 4H Chart 10/26


(click to enlarge)

We can see that last week, price fell from a support/resistance pivot area around 1.54. Even though the dip was strong, it held up at 1.53. Also note that price stalled as it approached a rising speedline. On the other hand, the price is trading under the 200-, 100-, and 50-period simple moving averages and the RSI tagged 30, two signs of a bearish market. 

So, we have a market that is showing some bearish signs, but still has an overall bullish look for October. If price can hold above 1.53, the GBP/USD still looks bullish with 1.55 in sight. A break below 1.53 would be a bearish continuation signal for the medium-term, putting 1.51 in sight, with risk of continuing lower.