GBPUSD 1.5830: Bullish – Consolidates under a new 7-month high

GBPUSD rallied strongly off its April low to post a new 7-month high at 1.5929 (June 18, 2015) before ranging. The first support lies at 1.5805 near the 2-week rising trendline (as shown on the 240 minute chart). Short-term bearish momentum suggests there is scope for further weakness towards 1.5645 (38.2% of the 1.5189/1.5929 rise) then 1.5557 (50% of the 1.5189/1.5929 rise) where buyers may step in. However, back above 1.5929 would signal return of strength and shift the focus higher towards 1.5944 (November 11, 2014 high) then 1.6186 (61.8% of the 1.7191/1.4565 fall).

Outlook:
Short term: bullish
Long term: bullish