GBP/USD dumped creating a gap of 40 pips to 1.5200

FXstreet.com (London) - Cable is reacting to activity else where in the market, and at the release of a dovish set of inflationary numbers from Canada, the USD marched on markedly across the board with gaps in the charts. Gaps do tend to be filled which is worth noting, but for now, 1.5190 support is looking highly vulnerable.

The cable has a strong support line at 1.5200 and 1.5190 but otherwise a break below 1.5200 and what support there could be at 1.5190 or 1.5175 (weekly support) may lead to a break out and continuation of the bear trend targeting March and April support at 1.5110. To the upside, there are the daily ranges in sight still with the 1.5264 pivot as an obvious target for a close above that to signal a correction attempt for 1.5340.