GBP/USD's Could Target 1.5550 (with Video)

GBP/USD’s Could Target 1.5550 (with Video)

4H and 1H: Following up with the latest updates on the GBP/USD (Video Technical Update), the anticipated bearish outlook has materialized. The first target of 1.57 has been reached and a break below that suggests the market can move to 1.55.Looking at 4H chart, we see the market resolving oversold conditions. The ability of the RSI to break below 30 suggests a bearish momentum breakout.The 1H chart also shows strong bearish momentum breakout.On top of that, there is a negative reversal in the 1H chart. It has not materialized yet. We want to see topping price action and the RSI break below its 5-periods SMA.The market may be channeling as seen in the 1H chart, and it is approaching resistnace near 1.58 near the fibonacci retracement level of 38.2%  (1.5825). The channel resistance and the 50-period SMA in the 1H chart is actually lower than the 38.2% retracement level.A swing projection using the length of the first swing eyes 1.5550 area, which is just above 1.50 an important pivot from April.Published on  Wed, Oct 20 2010, 13:56 GMT

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