GBP/USD: Challenging its Previous Low
GBP/USD has broken the support at 1.5608 and the subsequent bounce attempts have thus far been unimpressive. The key resistance at 1.5752 coupled with short-term overbought readings favour a short-term corrective phase. Monitor the previous low and support at 1.5539. A more significant support stands at 1.5423 (see also the rising channel). An hourly resistance is at 1.5638 (23/08/2013 high), while a key resistance remains at 1.5752.
In the longer-term, prices are moving within a mild declining trend since April 2011. However, the successful test of the support at 1.4832 (12/03/2013 low) suggests an improvement in the long-term trend.