GBPUSD Struggle Might Continue

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The British pound traded lower and was simply crushed against the US dollar after the US labour market report release recently. The GBPUSD pair traded below the 1.5080 support area, which is always considered as a major barrier for sellers. The pair almost tested the 1.50 handle, and is currently attempting to correct higher in the near term. There are several resistances on the way up for the pair. In the US today, the labour market conditions index will be released, which is expected to register a good reading. Let us see how the GBPUSD pair trades after the release.

There was a critical support trend line formed on the hourly chart of the GBPUSD pair, which was holding losses in the pair, but it was breached recently. The pair traded as low as 1.5030 and currently correcting higher. Initial resistance is around the 23.6% fib retracement level of the last leg from the 1.5251 high to 1.5030 low. The most important one is around the broken trend line, which also coincides with the 38.2% fib retracement level of the last drop. We need to see how the pair reacts when it reaches around the mentioned fib levels. Any major strength is looking impossible at the moment, as the US dollar buyers looks under control at the moment and they might continue to protect gains in GBPUSD.

GBPUSD 03.09.2015

If GBPUSD pair moves lower from here, then the last low of 1.5030 might come into play, followed by the 1.50 support area.

Overall, one might consider selling rallies in the GBPUSD pair as long as it is trading below the broken trend line.

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