19 May 2015
GBP/USD: Downside favoured - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet noted that GBP/USD extended its downward corrective movement this Monday, falling for a second day in a row on the back of dollar's strength.
Key Quotes:
"The British Pound slid, however, was limited compared to other high yielders, as the daily decline of the pair stalled around the 23.6% retracement of the daily run between 1.5088 and 1.5814 at 1.5640."
"The UK will release its inflationary readings this Tuesday, including PPI and CPI figures for April, expected generally stable."
"Nevertheless, the latest BOE inflationary report warned of the risk of a slide in inflation towards negative territory, which should come as a limited surprise, but weigh on the Pound anyway."
"Technically, the short term picture favors the downside, with the 20 SMA heading lower above the current price and offering intraday dynamic resistance around 1.5690, while the technical indicators holding near oversold levels."
"In the 4 hours chart, the 20 SMA turned flat around 1.5740, while the technical indicators maintain a tepid bearish slope well below their mid-lines, suggesting the pair may extend its decline down to the 1.5540 level, 38.2% retracement of the mentioned rally, should the upcoming UK data disappoint."
Key Quotes:
"The British Pound slid, however, was limited compared to other high yielders, as the daily decline of the pair stalled around the 23.6% retracement of the daily run between 1.5088 and 1.5814 at 1.5640."
"The UK will release its inflationary readings this Tuesday, including PPI and CPI figures for April, expected generally stable."
"Nevertheless, the latest BOE inflationary report warned of the risk of a slide in inflation towards negative territory, which should come as a limited surprise, but weigh on the Pound anyway."
"Technically, the short term picture favors the downside, with the 20 SMA heading lower above the current price and offering intraday dynamic resistance around 1.5690, while the technical indicators holding near oversold levels."
"In the 4 hours chart, the 20 SMA turned flat around 1.5740, while the technical indicators maintain a tepid bearish slope well below their mid-lines, suggesting the pair may extend its decline down to the 1.5540 level, 38.2% retracement of the mentioned rally, should the upcoming UK data disappoint."