GBPUSD rebounded at 1.500 after it saw its lowest since July 2013. Since August 2013, the pair saw the momentous downtrend towards the support of 1.500. ADX indicated the increase in market strength towards the downside, making counter trend trading an unwise position. The pair was seen trading slightly bearish sideways since 2009.
On the W1 chart, we see the downward movement of 130 pips towards the support of 1.500 which pushed the price back to 1.510. The price support level of 1.500 was last since as a strong support on 3 occasions in 2013. This would be a key support level for us when trading this pair. The long term trend is still bearish, thus we might see the price retrace to the possible resistance of 1.5190 before continuing its downtrend. ADX showed a relatively strong market strength towards the downside. In the event if we saw the break of 1.490, we can expect the next level of support to be 1.450.
For the past month, the pair was seen trading slightly bearish sideways on the D1 charts. The level of 1.519 acted as the key resistance level and saw the pair to form lower highs and lower lows. 1.500 acted as the key support level as we saw the formation of doji twice in the past month at that level. ADX did not indicate a clear direction of the market as the strength of the pair weakens and starts consolidate. In the first week of February, we can expect to see the news release for Contruction PMI, Services PMI, GBP Official Bank Rates, MPC Rate Statement and US unemployment claims.