Financial Advisor

GBPUSD - Bearish below 1.5478

Cable setbacks, in line with Wednesday's bullish call for sentiment, attracted fresh investor demand. But it was unable to recover more than half of Monday’s net decline and this has returned the focus to the downside. The scope of the Asian decline is a concern but we look for any bounce to find fresh selling interest.

In view of this our call is to be Bearish on Rallies while prices are below 1.5478. The immediate objective is 1.5394, yesterday's low point, with a move below that point targeting 1.5341, this week's bottom, or even towards 1.5288.

The risk to this call is that selling pressure is weaker than currently assessed although a fresh outright Buy signal would only be generated by a move through 1.5478, the overnight high. Prices and sentiment should then improve to 1.5493, yesterday's top, then towards this week's open of 1.5550.

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