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GBP/USD Testing its Price Bottom

Cable has been consolidating in the past 2 weeks, but broke above the consolidation range (1.5576-1.5735) this week, making this 2-week range a price bottom.

GBP/USD 4H Chart 11/27


(click to enlarge)

The 4H chart shows cable retreating from 1.5825, which was a previous support area earlier in November. It is now coming down below the 1.5735 range resistance. The integrity of the price bottom is in question, but as long as price holds above 1.57, forgiving some minor intra-session breach, and as long as price can rebound back above 1.5735, the bullish correction mode is still on, and the 1.59 level is still in sight.

However, failure to push back above 1.5735 and a fall below 1.57 should revive the prevailing downtrend and put pressure on 1.5586, with risk of breaking lower towards the 1.55 handle.

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