GBP/USD: Sellers to dominate the action unless 1.1550 turns into support
|GBP/USD has managed to erase a large portion of its daily losses after having dropped to its weakest level since March 2020. But bearish bias stays intact below 1.1550, FXStreet’s Eren Sengezer reports.
Sellers are likely to retain control as long as 1.1550 resistance holds
“Liz Truss is widely expected to win the Conservative Party leadership race. The market action is likely to be muted because participants want to see what the new PM will do to help households amid surging energy costs. Moreover, Brexit remains an unresolved issue that is likely to make it difficult for the pound to stage a decisive rebound.”
“In case cable stages a technical correction, 1.1500 (psychological level, static level) forms interim support before 1.1550 (static level, the upper limit of the descending regression channel, 20-period SMA). If the latter turns into support, additional recovery gains toward 1.1600 (static level, psychological level) could be witnessed.”
“On the downside, 1.1450 (daily low) aligns as next support ahead of 1.1400 (psychological level, lower limit of the descending channel).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.