23.06.201505:36 Forex Analysis & Reviews: Technical analysis of GBP/USD for June 23, 2015

Long-term review

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Owing to lack of UK macroeconomic data at yesterday's session, the US data determined the trend. The cable fell against USD after 10 bullish sessions.

US existing home sales bounced in May. The cable rejected at 50Msma at the previous week. The cable approached the strong supply zone between 1.5930 and 1.6040. In case of a daily close above 1.6050, bulls will gain another 150 and 250 pips. The monthly resistance is seen at 1.5935 50Msma. We said earlier: "We expect before further up move, the pair will go through healthy correction". The strong support is found at 1.5800, which is a previous swing high, 1.5700 (previous swing lower high), and strong support base at 1.5440.

Intraday: At the Asian session, the cable was trading at 1.5812 compared to 1.5824. The parallel support is found at 1.5806 (Thursday's low) and 1.5800 100Wema. In the H1 chart, the cable headed towards lower highs and lower lows. In the four-hour chart, the cable closed below the 20Dsma. The selling accelerates below 1.5800 towards 1.5780, 1.5760, and 1.5710/1.5700. The weekly 50Dsma is found at 1.5685. Intraday buying is available above 1.5860 with targets at 1.5890, 1.5910, and 1.5930/1.5950.

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