GBPUSD Technical Analysis – 22nd May Update – Forex-FX-4X.com

• Cable has moved to a low of 1.5018 on Wednesday, covering 163% of the average daily range on increased volatility.
• This weeks high was capped at the price pivot zone around 1.5280, this remains as a near term upside technical level of interest.  
• Price is now consolidating around 50 pips above the key 1.5000 handle round number area.  This area acted as support when last hit around late March and early April.  
• However, if price closes near the current level we will see a strong bearish GBPUSD candle on the daily timeframe.  Price action around 1.5000 is seen as key in the near term.
• The dollar index has seen extended upside move today after dropping to a multi session low of 83.52 prior to the move to 84.51; the index looks set to close as a bullish engulfing candle.  
• A break above USDX 84.51 could potentially see further pressure on the majors, including cable, as the greenback threatens to resume the recent bullish trend.
• The above comes as the key EURUSD pair moved to a high of 1.2996 today – just shy of the 1.3000 round number – prior to dropping to a low of 1.2832.