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GBP/USD falls below 1.4300

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    A stronger US dollar across the board pushed GBP/USD back below 1.4300. Cable reached a fresh daily low at 1.4291 and it was trading slightly under 1.4300, holding a bearish tone in the short-term.

    GPB/USD trimming last week gains

    Last week the pair rallied more than 150 pips boosted after ECB decisions and reached 1.4435. Then pulled back modestly ending the week around 1.4375. Today has been moving with a downside bias since Asian hours.

    From last week highs, it has fallen 130 pips and today is having the worst performance since February 26.

    Greenback and the yen are among the top performers in the market on Monday, ahead for Wednesday’s FOMC decision. The Bank of England will also announce its decision during the week, on Thursday.

    GBP/USD technical outlook


    According to Valeria Bednarik, Chief Analyst at FXStreet the 1 hour-chart presents a clear short term bearish tone, “as the technical indicators head sharply lower near oversold levels, whilst the pair is extending its decline below a bearish 20 SMA.”

    The 4-hour chart, explains Bednarik, shows price pressuring a bullish 20 SMA, “while the technical indicators have turned sharply lower around their mid-lines, increasing the risk of further declines, particularly on a break below 1.4260, the 200 EMA and the immediate support.”
    For more information, read our latest forex news.
     

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