- GBP / USD witnessed strong selling on the last trading day of the week.
- Mixed technical indicators on hourly / daily charts warrant traders’ caution.
The pair GBP/USD maintained its offered tone during early North America, with bears making a further attempt to extend the slide below 1.3500.
The mentioned level represents confluence support, comprising the 100 hourly EMA and the lower limit of the weekly rising trend channel. A convincing break below should pave the way for an extension of the ongoing corrective slide from the multi-year highs set on Thursday.
Meanwhile, technical indicators on the 1-hour chart have gone lower in bearish territory and have lost traction on the 4-hour chart. However, the oscillators on the daily chart maintained their bullish bias and warrant caution for aggressive bearish traders.
However, a convincing advance from the aforementioned confluence support could still accelerate the slide to support at 1.3455-50. Some subsequent selling could make the GBP / USD vulnerable to dip further below 1.3400, towards the 1.3340-20 congestion zone.
On the other hand, the 1.3550-55 region now appears to have emerged as immediate resistance. A sustained move further has the potential to push the GBP / USD towards the 1.3600 round mark, en route to yearly highs around 1.3625.
1 hour chart
Technical levels
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