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Fan Yang

GBP/USD - What's Next? 1.55 or 1.50

GBP/USD looks bearish in the weekly chart (price below the moving averages and the RSI holding under 60 after tagging below 30). This bearish outlook is within a secular sideways market since 2010. In the short to medium-term, the weekly chart suggests pressure towards at least the 1.50 handle. 

GBP/USD Weekly Chart 11/16

(click to enlarge)

Let's take a look at the 4H chart. 

GBP/USD 4H Chart 11/16

(click to enlarge)

The 4H chart also shows bearish bias despite the rally last week from about 1.5025 to 1.5250. We can see resistance here at 1.5250, which was around a previous support area, a falling trendline, and the cluster of moving averages. The 4H RSi has also tagged below 30 and is holding under 60. If price now slides back below 1.5170, GBP/USD would have a bearish outlook towards the 1.50 handle.

Now, a break above 1.5250 does open up some bullish outlook, especially if price starts holding above 1.52. There can be upside risk towards 1.55. However, based on the prevailing bearish bias, I would be less confident of the bullish outlook than the bearish one. 

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