FxWirePro: GBP/USD bulls exhausted at intermediary trendline resistance – more dips underway

It has been observed and kept urging that there would be range bounded swings on this pair where upper band is 1.58 which is maintaining as a resistance point while 1.5175 as support from last couple of months (From April).

In between, the pair has also made an intermediary channel at 1.5475 levels where it has acted as resistance and support several times in the past (see yellow colored circled areas).

We have noticed the rejection at same juncture yesterday also, as result struggling below 1.5406 levels.

RSI: Currently, RSI (14) trending near 55.0929 levels converging according to the price fluctuations as there is no clarity about the trend form this oscillator, on closing basis movement should be closely watched if it suggests downward signals.

Stochastic: Although the there is neither a trace of overbought nor oversold situation, it alarms bears trying to take over the rallies as the slow stochastic noises with %D line cross over around 67 levels (current %D line flashes at 68.2525).

Hence, we would foresee GBP on weaker side on the back of today's construction PMI which has flashed at 58.8 although well in line with forecasts but reduced from previous 59.9. As a result of above technical and fundamental reasoning we see pair to head towards 1.5345 levels.