GBP/USD: 1.4640 is key resistance - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the British Pound fell to 1.4532, its lowest since June 2010 against the greenback, before finally bouncing some to close the day around the 1.4600 level, erasing most of its intraday gains.

    Key Quotes:

    "Down for a seventh day in a row, data coming from the UK showed that house prices in the three months to December were 1.6% higher than in the previous three months, according to Halifax, well above the 0.3% increase expected. Positive at a first glance, the undertone of the news is negative, as its implies fewer chances of a rate hike over time, as it signals a possible housing bubble."

    "In not about housing data, but the Brexit referendum looming the main reason beyond the latest Pound decline. The pair may now advance further on correction, although is not yet confirmed short term, as in the 1 hour chart, the price is struggling around a bearish 20 SMA, while the technical indicators head higher, but are still below their mid-lines.

    In the 4 hours chart, the technical indicators are heading higher after bouncing in extreme oversold levels, while the price is still below a bearish 20 SMA, now capping the upside around 1.4640, where the pair has also set several intraday highs and lows this week, and therefore the level to break to confirm further gains."
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