GBPUSD extended the strong rebound off the 1.4565 reaction low (April 13, 2015) via the 1.5089 higher low (May 5, 2015) to approach 4-week rising channel upper bounds, retracing over 38.2% of the 1.7191/1.4565 fall. Further gains open 1.5871 (50% retracement of the 1.7191/1.4565 fall) ahead of the 1.5944 (November 11, 2014 lower high). Immediate support level lies at 1.5575 (May 11, 2015 intraday low). Below rests the 1.5502 minor higher low.
below 1.1939 (May 6, 2015 range low) to post new 4 month lows towards 1.1931 (January 20, 2015 low). A clean break below the latter would expose the 1.1801 support (January 15, 2015 higher low) near 61.8% of the 1.1190/1.2834 rise). The oversold condition cautions near term. The 1.2027 resistance area (May 13, 2015 high) should cap bounces. However, a concerted push back above 1.2027 would re-focus 1.2143 (May 11, 2015 high). Above there would stabilize.
Outlook:
Short term: bullish
Long term: neutral
below 1.1939 (May 6, 2015 range low) to post new 4 month lows towards 1.1931 (January 20, 2015 low). A clean break below the latter would expose the 1.1801 support (January 15, 2015 higher low) near 61.8% of the 1.1190/1.2834 rise). The oversold condition cautions near term. The 1.2027 resistance area (May 13, 2015 high) should cap bounces. However, a concerted push back above 1.2027 would re-focus 1.2143 (May 11, 2015 high). Above there would stabilize.
Outlook:
Short term: bullish
Long term: neutral
