GBP/USD suffers from negative pressures - technical analysis - 15-12-2015

The pair GBP/USD hit the important resistance level of 1.5247, which represents the ratio 50% of the Fibonacci retracement levels for an ascending wave in the medium term (from 1.4565 to 1.5930), which concurred with testing a downward trend line in the short term as shown in the attached chart; also with touching the resistance of the simple moving average for the period 50, which led to a doubling of negative pressure on the pair's movements; a doubling that forced them to bounce lower, forming a negative divergence at the Stochastic indicator as shown below the chart.

 

Therefore we expect a decline for the pair, targeting the first support level of 1.5086, which represents the ratio 61.8 of the same retracement levels, and in case of breaching it; it would open road for more decline, targeting subsequently the support of 1.4887, which represents the ratio 76.4%.