FX.co ★ GBP/USD: ST resistance at 1.551

Overview:
GBP/USD is consolidating with bearish bias after hitting seven-month low of 1.5436 on Monday. The rate is undermined by bleak U.K. economic outlook; expectations of looser monetary policies from the Bank of England in coming months; fears of U.K. ratings downgrade; positive USD sentiment; GBP sales on buoyant EUR/GBP cross. But GBP/USD downside is limited by GBP demand on buoyant GBP/JPY as weak yen sentiment supports the cross. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold; five- and 15-day moving averages are falling.
Preference:
Sell below 1.551 with 1.541 and 1.534 in sight.
Support levels:
S1 - 1.541
S2 - 1.534
S3 - 1.5320 (June 5 low)
Alternative scenario:
Buy above 1.551. The upside penetration of 1.551 will call for a rebound towards 1.555 and 1.56.
Resistance levels:
R1 - 1.5549 (Friday's high)
R2 - 1.56
R3 - 1.5645
Technical comment:
The pair stands below its new strong resistance and remains under pressure, the RSI lacks upward momentum.