GBP/USD forecast: Might turn short-term bearish on a daily close below 1.5795 – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, sees downside potential for GBP/USD in the short term if the pair breaks and registers a daily close below 1.5795 levels.

Key Quotes

“On the daily chart, the bid tone on the spot exhausted closer to the inverted head and shoulder neckline at 1.5941. The pair currently trades at 1.5876, which is the 50% Fib R of 1.7190-1.4564. A break below the same appears likely owing to overbought RSI on the daily and intraday time frame, thereby opening doors for 1.5795 ((confluence of 76.4% Fib E (1.4564-5490-1.5088 and 50% Fib E of (1.4564-1.5813-1.5169)).”

“A negative close today would also confirm the bearish RSI divergence on the daily chart. However, the short-term outlook could turn bearish in case we witness a daily close below 1.5795.”

“On the higher side, the immediate gains appear capped at 1.5941 ((inverted head and shoulder neckline and (61.8% Fib E of 1.4564-1.5813-1.5169)).”

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The bid tone on the GBP/USD exhausted at the high of 1.5895 in the Asian session, after which the spot fell to 1.5859.
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