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GBP/USD: 1.4860 is key to the downside - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 21, 2015.

  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 GBP/USD pair has made little progress this Monday, holding near the 8-month low set last week at 1.4863, and closing the day a handful of pips below the 1.4900 figure.

    Key Quotes:

    "...with the Pound being weighed by the remarks from BOE´s Martin Weale, highlighting that “the factors pushing down inflation have become a bit more prolonged,” which means that a rate hike is for now, out of sight."

    "Technically speaking the 4 hours chart shows that the price has been capped by a bearish 20 SMA in an early attempt to advance, while the Momentum indicator diverges from price action, having recovered up to its mid-line."

    "The RSI indicator however, maintains a bearish slope near 36, supporting further declines particularly on a break below 1.4860, the mentioned low and the immediate support. Such break should open doors for a continued decline towards the 1.4750 region, the next strong mid-term static support area."
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