GBP USD Technical Forex Analysis for Forex Traders

The moment the Pound broke 1.5441 on Monday, this pair has left the "neutral zone" which we said is between 1.5587 & 1.5441. Therefore, it is only logical now to expect the Pound to dive. But after more than 240 pips down from yesterday's top, the short term correction we are seeing now is (As we said yesterday) no surprise, with a condition of staying below 1.5480. The Pound is notorious for breaking, then moving in the other direction, before moving in the right direction smoothly and strongly. And now that we have tested 1.5480, we should wait and see what will the price do with it! Breaking this important level (in case it happens) can change the outlook dramatically! Short term support is at 1.5395, which was tested earlier this morning. If broken, the Pound will continue to fall, and it will target 1.5262 & 1.5151. On the other hand, the price has challenged 1.5480 yesterday, but it dropped more than 90 pips from yesterday's high. If we maintain trading below it, that will not change a thing. But if we break it, our negative outlook will suffer. The resistance we put our attention at is 1.5441, which is the "guardian" of 1.5480! if broken, the price will shoot up to the very important 1.5596, and the most important 1.5700.

 Support:
* 1.5392: short term 61.8% Fibonacci level.
* 1.5262: Jul 5th high.
* 1.5151: Jul 20th low

Resistance:
* 1.5441: the falling trend line from yesterday's top on intraday charts.
* 1.5596: Aug 26th high and the slowly falling trend line from Aug 16th top.
* 1.5700: Aug 16th important top.