GBP/USD heavy on 1.5700 and bears in control

FXStreet (Guatemala) – GBP/USD is currently trading at 1.5729 with a high of 1.5777 and a low of 1.5691.

GBP/USD is finding some demand after a heavy amount of supply from the starting hourly sticks of the US session, where otherwise, Sterling had a good run in European trade.

GBP/USD price action

GBP/USD rallied from 1.5698 lows in mind morning London trade to 1.5774 only to meet strong supply that took the major down to 1.5734 before attracting demand again on the US open until 1.5770 again. The US traders had the pair on its knees again, although with the handle holding in as support on the figure as we drift tot he upside to current level.

GBP/USD fundamentals with Greece stealing the show

GBP/USD is moving, more or less, in tandem with the euro and on going headlines hitting the wires around the Greek debacle. There are plenty of uncertainties and many headlines that are coming through the various media channels to distract us from the broader trends in the majors, creating volatility around whether Greece’s new proposals will be negotiated before a referendum that is scheduled to take place this Sunday. Tsipras has urged the Greek public to vote ‘NO’ to the creditors terms which could offer Greece a stronger platform to negotiate from. Meanwhile, UK GDP q/q came in line and y/y it printed better than expectations at 2.5% vs actual 2.9%.

GBP/USD technically negative

GBP/USD has been for the most part neutral, with upsides hitting supply and keeping the major confined to a sideways channel of 127 pips wide between 1.5660 since the bearish gap was formed at the start of the Asia week and 1.5787. Karen Jones, chief analyst explained, “GBP/USD continues to hold quietly sideways keeping the outlook negative. Given the recent failure of the market around the 50% retracement and 200 week ma (circa 1.5879) and the fact that we continue to suspect that this is a potential large bearish rising wedge pattern – we remain negative.”

GBP/USD is currently trading at 1.5729 with a high of 1.5777 and a low of 1.5691.

(Market News Provided by FXstreet)