GBP/USD: stuck at at 76.4% retracement

FXStreet (Mumbai) - The corrective rally witnessed in the GBP/USD lacked strength to push it above 76.4% of Apr to June rally located at 1.5087 levels.

Confluence of resistance

The spot faces a confluence of resistance seen at 1.5087 (76.4% Apr to June rally), which is also May 5 low. Sterling was heavily offered last week on account of a surprisingly dovish tone of the BOE and due to a stellar non-farm payrolls report, leaving the pair oversold on the technical charts.

The spot currently trades around 1.5087; struggling to push through despite being oversold on intraday charts.

GBP/USD Technical Levels

The immediate resistance is located at 1.5087 (61.8% of Apr-Jun rally), above which the pair could target 1.5157 (hourly 50-MA) and 1.5163 (Sep 4 low). On the lower side, a failure to take out 1.5087 could push the pair back to 1.5025 (falling channel support) and 1.50 levels.