GBP/USD: downside bias still below 200/50 death cross

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 26, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - GBP/USD is currently trading at 1.5096 with a high of 1.5132 and low of 1.5065.

    GBP/USD has consolidated the downside as the greenback picked up the pace this week and Sterling suffered on the back of BoE's Haldane's comments when stating that the balance of risk around UK GDP and inflation have skewed materially to the downside.

    However, sterling got a lift in the Autumn Forecast statement, with the 2016 GDP growth forecast was raised to 2.4% from previous 2.3%, although Carney has already disappointed Sterling desks earlier the week when he gave no clear signs as to when the central bank would raise rates.

    The data for the week on the US was equally mixed while Durable Goods beat expectations arriving at 3.0% vs just 1.5% expected and -0.8% previous. The PCE came in line with expectations y/y while M/M missed lower by 0.1%.

    GBP/USD levels

    Technically, GBP/USD was rejected last week by the 200 day ma at 1.5340 and is back under pressure. The price is turning towards the month's low near 1.5025/30 on repeated upside recovery failures and is now pressured below the 100 DMA and 20 SMA on the hourly sticks. The 200/50 DMA death cross remains a strong bearish indication also and a break of 1.5050 would open up 1.4980 and March resistance bar the 17th March spike.
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