GBP/USD keeps falling in Asia, sub 1.43 ahead of Tokyo

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    GBP/USD continues to trade under pressure in the iliquid transition between New York and Tokyo, resulting on an additional 25/30 pips decline sub 1.43, setting a new low for the week at 1.4279, which represents over 1.5 cents from the high printed last Friday circa 1.4430.

    GBP/USD fundamental/technical view

    Valeria Bednarik, Chief Analyst at FXStreet, notes: "Many market players believe that the pair is undervalued, but it topped out last week at a major resistance level, the 61.8% retracement of this year's decline, between 1.4815 and 1.3835, and to confirm a continued advance the pair needs to regain the 1.4450 level."

    Valeria adds that according to the 1 hour chart, a clear short term bearish tone remains, "heading sharply lower near oversold levels, whilst the pair is extending its decline below a bearish 20 SMA."

    "In the 4 hours chart, the price is 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" Valeria concluded.
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