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GBPUSD update

Our last commentary on the GBPUSD discussed the significance of support near 1.5500. This support level has shifted down to around 1.5470 as the market is beginning to weaken further.

We can see on the daily chart below today’s price action formed a small bearish pin bar showing rejection of the 8 and 21 day moving averages which are about ready to cross lower indicating negative momentum is increasing in this market.

A decisive break past 1.5470 could lead to prices falling lower into support near 1.5250 before we see an upside correction take hold.

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Commentary:

The dollar strengthened against major currencies, including the euro, which was further hurt by poor European economic data and prospects of loose monetary policy for a longer period in the region.

Crude oil prices fell 72 cents or 0.98 percent to $73.10 a barrel, this was the lowest close since July 6th, as a stronger dollar made it more expensive for investors using other currencies to buy crude.

The Dow lost 39.21 points, or 0.38 percent, the S&P 500 dropped 4.33 points, or 0.40 percent, and the Nasdaq dropped 20.13 points, or 0.92 percent.