Key strategic resistance in GBPUSD is so far holding as the view may shift lower in coming days again to the psychologically important 1.5000 area if the US dollar can catch a wider bid.
GBPUSD weekly chart
On the weekly chart, we can see that the structural resistance of the lower bound of the old range held on this run higher so far. The inability after two attempts to punch through 1.5200 and this level should be giving the bears some confidence and provide a tactical hook for risk/reward measures. The recent 1.5200/50+ resistance area was also centred on the 0.382Fibo of the huge wave lower from 1.5850 to the sub 1.4900 lows.
GBPUSD daily
Zooming in on the daily, we can see that a 0.618 retracement of the still relatively dead-cat bounce in the pair would take it right back to a test of the 1.5000 level, which holds double significance now. Also, the inability of the break of the upside head and shoulders formation to generate any upside excitement is a warning for the bulls.
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