GBP/USD chopping around 1.5100 in Asia trade

FXstreet.com (Barcelona) - The Sterling is edging lower in Asia trade, down 27 pips at 1.5082 but at one point trading as low as 1.5063. Economic data was not released in the previous session with the both the US and UK being closed for holiday, but we will see some data in the upcoming US session including S&P Case-Shiller Home Prices, Consumer Confidence, and Richmond Fed.


From a shorter term technical perspective, the pair appears to have broken a short term ‘bear flag’ continuation pattern (confirmed with 1 hour close below 1.5100) on the 60min chart which has targets down near the 1.5035 area. Furthermore, both short term moving averages and RSI (14) are also bearish on the 1 hour chart which could continue to limit advances as the day progresses.

The FXStreet.com Trend Index remains Slightly Bearish on the daily chart, while the OB/OS Index reads Neutral. Initial resistance sits at 1.5112 (the 50dma on 1 hour chart), followed by 1.5147 (the 9dma). First support sits at 1.5063 (low of current session), followed by 1.5013 (previous week low). On a final note, both short term moving averages and the RSI (14) also remain in bearish set up on the daily chart which may continue to help limit advances.