GBP/USD recovers from lows, hovers around 1.5250

By FXStreet FXStreet (Córdoba) – GBP/USD bottomed out at 1.5218, level not seen since early June, during the American session but overall it saw little intraday activity, confined to the 1.5200 region.

Earlier in the European morning, the UK Services PMI fell down to 55.6 in August, from 57.4 in July, the lowest level in over two years, adding to the batch of tepid data coming from Britain these past weeks.

GBP/USD levels to watch

“Technically, the downside is still favored, despite the almost 600 pips straight decline, as in the 1 hour chart, the price develops below a mild bearish 20 SMA, whilst the technical indicators are turning south below their mid-lines”, said Valeria Bendarik, chief analyst at FXStreet. “In the 4 hours chart the 20 SMA continues to be the main intraday resistance, heading strongly lower now around 1.5320, whilst the RSI indicator is barely bouncing from oversold levels, around 35, and the Momentum indicator is also standing below its mid-line. The risk of an upward corrective movement increases ahead of the weekend, yet a strong US employment report should see the pair breaking lower, with the next immediate bearish target at 1.5170”.

Support levels: 1.5250 1.5220 1.5170. Resistance levels: 1.5290 1.5330 1.5360.
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Source:: FX Street