23 Apr 2014
GBP/USD consolidating a poor performance
FXStreet (Guatemala) - GBP/USD is trading at 1.6772, down -0.30% on the day, having posted a daily high at 1.6838 and low at 1.6762.
GBP/USD has been grinding lower and lower on the day but has started to consolidated on 1.6770. The event for Sterling today were the BoE minutes. “Overall, there is little sense in the April Minutes of any meaningful shift in the MPC's policy bias or signalling”, explained strategists at RBS. “The fall in the unemployment rate below the 7% threshold opens the door to greater hawkish dissent…On balance, we expect the MPC's May inflation forecasts (and, therefore, their policy signalling) to be little changed vis-à-vis February (on balance, a marginal downward revision to CPI at the 2-3 year forecast horizon seems most likely)”. All in all, a les hawkish out look from the BoE weighing on the pound.
GBP/USD oversold?
Meanwhile, the FXStreet OB/OS Index is reflecting oversold hourly conditions, while the FXStreet Trend Index is slightly bearish. Currently RSI is at 36.63, up from the last hourly print at 28.85, with ADX at 22.49, down from its previous close at 52.51. Daily RSI sits at 66.70, in neutral territory
GBP/USD Levels
Spot is presently trading at 1.6773, and next resistance can be seen at 1.6777 (Hourly 200 SMA), 1.6786 (Yesterday's Low), 1.6791 (Weekly Low), 1.6793 (Daily Classic S1) and 1.6797 (YTD High). Next support to the downside can be found at 1.6765 (Weekly Classic PP), 1.6763 (Daily Classic S2), 1.6762 (Daily Low), 1.6739 (Daily Classic S3) and 1.6721 (Daily 20 SMA). Regarding candlestick formations, we can see Doji formation on the 1-hour .
GBP/USD has been grinding lower and lower on the day but has started to consolidated on 1.6770. The event for Sterling today were the BoE minutes. “Overall, there is little sense in the April Minutes of any meaningful shift in the MPC's policy bias or signalling”, explained strategists at RBS. “The fall in the unemployment rate below the 7% threshold opens the door to greater hawkish dissent…On balance, we expect the MPC's May inflation forecasts (and, therefore, their policy signalling) to be little changed vis-à-vis February (on balance, a marginal downward revision to CPI at the 2-3 year forecast horizon seems most likely)”. All in all, a les hawkish out look from the BoE weighing on the pound.
GBP/USD oversold?
Meanwhile, the FXStreet OB/OS Index is reflecting oversold hourly conditions, while the FXStreet Trend Index is slightly bearish. Currently RSI is at 36.63, up from the last hourly print at 28.85, with ADX at 22.49, down from its previous close at 52.51. Daily RSI sits at 66.70, in neutral territory
GBP/USD Levels
Spot is presently trading at 1.6773, and next resistance can be seen at 1.6777 (Hourly 200 SMA), 1.6786 (Yesterday's Low), 1.6791 (Weekly Low), 1.6793 (Daily Classic S1) and 1.6797 (YTD High). Next support to the downside can be found at 1.6765 (Weekly Classic PP), 1.6763 (Daily Classic S2), 1.6762 (Daily Low), 1.6739 (Daily Classic S3) and 1.6721 (Daily 20 SMA). Regarding candlestick formations, we can see Doji formation on the 1-hour .