GBP/USD downside opening up towards 1.4600

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - GBP/USD remains capped below the 200 SMA on the hourly chart and price is falling away to the downside making fresh lows into the 1.47 handle as the week moves along.

    The shine of of the pound is fading as we head towards the close for 2015. Prospects of a BoE hike is dwindling and that correlation to the Fed was a supportive factor to sterling previously. There was a disappointing GDP report and oil also continues to drop despite recent attempts of a short squeeze, the bottom has not be found yet.

    GBP/USD bearish levels

    Analysts at Scotiabank explained that cable topped out twice at 1.4950 over the holidays, leaving a nicely-formed, potential double top on the short-term charts. "A break lower would fit with the generally softer undertone in this market at the moment. A sustained break under 1.4800 targets 1.4600."
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