26.05.201505:40 Forex Analysis & Reviews: Technical analysis of GBP/USD for May 26, 2015

The cable fell below the ascending trendline formed from lows. At yesterday's muted session, the cable rejected at the trendline made a lower low. Today, the cable rejected at 20Dsma trading below the previous 2-day low. In the four-hour chart, the cable has been making lower highs.Today, traders eye on the US core durable goods orders. The March manufacturing data returned back after seven months of negative readings. We expect the April readings to stay above 0.4%. Ahead of data release, the pound is trading lower against USD. The parallel support is found at 1.5446 and 1.5393, which weeks' lows. Before starting the next leg up, we expect the cable to touch 1.5330 and 1.5300. In case bulls lose control at 1.5300, another leg down is expected towards 1.5220 where buying is available. The cable favors buying on dips with sl 1.5100. Bottom fishing is seen between 1.5220 and 1.5150 with sl 1.5100. The lower levels of 1.5220 and 1.5150 are expected in case the price closes below 1.5393.

Intraday: The nearest support is found at 1.5446. Bears have a selling opportunity below 1.5440 aiming at 1.5390, 1.5355, 1.5340, and may be 1.5300 with sl 1.5510. Intraday resistance is seen at 1.5475, 1.5510, and 1.5550. Until the price closes below 1.5700, bears will have the upper hand. The selling pressure will be turned heavily below 1.5390 towards 1.5350 and 1.5340. Bulls have a buying opportunity above 1.5525 aiming at 1.5550, 1.5570, and 1.5600. In the extreme case bulls can aim at 1.5660. Bulls will regain their strength above 1.5700.

Trade: Selling below 1.5440, panic below 1.5390