GBPUSD Technical Analysis for May 15, 2013

The cable has had a very bearish days, and it is quite possible that we may see stronger falls in the medium term for this pair, if the bearish continuation patterns are completed in the technical analysis.

The GBPUSD is trying to break the support at the 1.5197level; that level has shown a lot of strength for a few weeks and bearish movement has been so widespread, it is very possible to see low-range movements or consolidation in this pair, in order to form a higher low pattern for break the supports that are in the way of this pair. If GBPUSD breaks the 1.5197 level, is likely to see falls to support at the 1.5071 level, on the other hand, that our bearish outlook is invalidated, the GBPUSD would have to break resistance at 1.5400 psychological level, something highly unlikely due to the weakness that has shown the pound in recent days, thanks to economic data that are not conducive at all to the UK economy. The 1.5071 level is very important because if the GBPUSD breaks that level, there is much room for this pair fall to support at the 1.4895 level.

The MACD indicator remains in negative territory, supporting a bearish outlook in the medium term for GBPUSD.

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