GBP/USD recovery stalls at 1.5600 region, downside extends

FXstreet.com (New York) - The GBP/USD technical pair received a welcome impetus in a USD retreat across the board earlier during US trading, though this movement has now faltered, opening up fresh losses.

Earlier today in the United States, New Home Sales (MoM) were reported at 0.394M in July, missing expectations of 0.485M. In addition, New Home Sales Change (MoM) fell -13.4% in July, compared to a consensus of -1.4%.

Despite briefly paring its losses and probing the 1.5600 region recently, the GBP/USD has now fallen back into negative territory, incurring a loss of -0.11% off its opening as it settles at 1.5571. Briefing the technicals, the GBP/USD remains fortified by supports at 1.5563, onto 1.5536, and 1.5510, suggests the Danske Research Team.

GBP/USD strategic bias

According to Technical Analyst Team at ICN.com, “The GBP/USD moved to the upside but remained limited below 1.5645 which caused the current huge drop, where the pair is trying to stabilize below 1.5550 through it. Prolonged stability below 1.5550 represented in 78.6% correction might bring the pair further to the downside. Anyhow, trading below 1.5605 became negative during the U.S. session today.”

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