FOREX: British Pound starts the week off bearish against US Dollar

By CountingPips.com

The British pound sterling has begun the week on the decline against the US dollar in foreign exchange market trading. The GBP/USD currency pair is currently trading around the 1.5300 price level after the close of the New York trading session. The pair began the week trading about 50 pips higher.

The GBP/USD dropped last week following two straight weeks of increases and closed below the 1.5500 major support resistance level. So far this week, the pair has been trading outside the weekly ascending channel (see below weekly chart) that has held for the last 10 weeks approximately.

Support & Resistance:

The GBPUSD looks to be headed to a test of the 1.5250 support level which is just 50 pips below current price. A close below this level would bring the possibility of a retest of the major 1.50 level and bring this pair close to the lowest levels of 2013.

Any rebound this week in the British pound would see overhead resistance near the 1.5360 level up to the 1.5400 round number while the major 1.5500 threshold would also be lurking above.

This week is light on fundamental data for the UK with jobless claims numbers and the Bank of England inflation report both due out on Wednesday.

GBP/USD: Last 6 Weeks of Changes & Ranges

* current week

Written by Zac Storella, CountingPips Forex Blog & Currency Research