GBP/USD bears eye 1.5550

FXStreet (Guatemala) – GBP/USD is currently trading at 1.5735 with a high of 1.5790 and a low of 1.5682.

GBP/USD has been a trade that if traders had a choice, one would stay away from but markets makers have been dealing with flows on unforeseeable risk factors, such as the SNB intervening in EUR/CHF which took the euro on a rally despite the Greek debacle. Bids in Sterling followed and have been met with supply on a stronger euro and dollar that is battling back across the Yen and commodity currencies.

GBP/USD has no clear place in the Greek situation as a trade for the time being, until there are clearer outcomes next week post the scheduled referendum. The greenback would likely play a ‘safer haven’ than sterling’s roll on a no vote as the UK would likely suffer a blow on the possible catastrophe. However, without a crystal ball, we move back to the technical picture for the pound.

GBP/USD’s intraday Elliott wave count has become more negative, as explained by Karen Jones, chief analyst at Commerzbank, who already suggested that the market will fail on rallies to the 1.5790/1.5820 area. “The market will have to drop back below 1.5550 (February high) to trigger losses to the 2 month uptrend at 1.5448. Only below here will cast attention back to the support at 1.5171, the June low.”

GBP/USD is currently trading at 1.5735 with a high of 1.5790 and a low of 1.5682.

(Market News Provided by FXstreet)