GBP/USD might see additional gains above 1.5590 – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, notes GBP/USD needs a recovery above 1.5590 to see additional gains towards 1.5635 and 1.5670.

Key Quotes

“The GBP/USD pair plummeted to a daily low of 1.5541 following the release of the UK inflation figures, with May YoY reading up 0.1% as expected, but Retail Price Indexes and Producer Price Index generally weaker.”

“The 4 hours chart shows that the price has managed to recover some of the lost ground, bouncing from its 20 SMA at the mentioned daily low, whilst the technical indicators have turned lower, but hold above their mid-lines, suggesting this intraday decline may well be corrective.”

“Should the price recover further above the immediate resistance at 1.5590, chances turn back towards the upside, with 1.5635 and 1.5670 as the next intraday probable bullish targets.”

“Renewed selling pressure below the daily low on the other hand, should lead to a downward extension, eyeing then a test of 1.5485, Monday's low.”

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