GBP/USD bulls losing momentum at 1hr MA cluster

By FXStreet FXStreet (Guatemala) – GBP/USD is currently trading at 1.5422 with a high of 1.5446 and a low of 1.5358.

GBP/USD caught a bounce off the 200 SMA on the hourly chart that trades at 1,5356 currently and has rallied up to meet the 550 SMA on the same time frame that is located at 1.5424 currently. The key data for the pound was overnight in the London shift with the UK Construction PMI for October. These came in as expected at 58.8 and offered an upbeat picture of the UK economy that continues growing at a firm pace.

GBP/USD levels

Technically, GBP/USD momentum has slowed around the cluster of MA’s that are turning neutral after the bullish phase from late October business. The recent failure at 1.5480 ahead of the key 1.5509 October highs are keeping pressures on.

However, below neutral territory and on the wide, downside failures at 1.5200 are required to retarget the 1.5172/55 June and September lows en route to the 1.5108 1st October low as suggested by Karen Jones, chief analyst at Commerzbank. “The more important 1.5086/1.5000 support, which is the 61.8% retracement and psychological support, is likely to provide strong support.”
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Source:: FX Street