GBP/USD has plunged under 1.3550, the lowest since January. Markets are in a sour mood as China suffers from power outages. The British army is on standby to mitigate fuel shortages. The pound ignores the hawkish comments from BOE Governor Bailey.
Positive momentum on the four-hour chart is all but gone, and the pair failed to break above the 50 Simple Moving Average (SMA). Moreover, unsuccessful upward moves resulted in lower highs – another bearish signal.
Some support awaits at the daily low of 1.3660. It is followed by 1.3640 and 1.3610, last week's trough.
The first upside level to watch is 1.3690, which capped cable early last week. It is followed by 1.3730 and 1.3755, both resistance lines from recent sessions.
