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GBP/USD: 1.5315 is key resistance - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet noted that the GBP/USD pair managed to recover some ground this past week, having advanced up to 1.5263, the 50% retracement of its latest daily fall.

    Key Quotes:

    "The pair run into the level following the release of weaker-than-expected macroeconomic data in the US, and found buyers on a pullback below the 1.5200 level. The Pound has recovered part of its charm, after taking a hit from the latest BOE's economic policy meeting, in which the Central Bank downgraded its growth and inflation forecasts, diminishing chances of a rate hike for the first half of 2016 in the UK.

    Nevertheless, the GBP is still among the strongest currencies across the board, and the first to gain on dollar's weakness. Technically, the daily chart shows that the technical indicators have extended their recoveries from oversold levels, but also that the upward momentum faded before they cross towards positive territory.

    In the same chart, the 20 SMA maintains a strong bearish slope a few pips above the mentioned high, all of which limits chances of a stronger rally at the time being. Shorter term, the 4 hours chart shows that the price is above a firmly bullish 20 SMA, but that the technical indicators lack upward strength and are barely holding above their mid-lines. The 61.8% retracement of the November's decline stands at 1.5315, and it will take a break above it to confirm a continued upward move during the upcoming days."
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