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GBP/USD making a minor recovery in downside

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 14, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - GBP/USD has been offered of late while oil continues to decline in price and recent BoE events are pushing back scope of a rate hike any time soon with just one voting member in favour of a rate hike.

    The inflationary picture in the UK is expecting to contract and the data this week could be pivotal sterling in respect of the start of 2016's outlook while the FOMC is looking to be a sure bet of a Fed hike, although it will be more about the detail behind the scenes that will be revealed in Yellen's rhetoric and guidance.

    GBP/USD levels

    Technically, Valeria Bednarik, chief analyst at FXStreet explained that GBP/USD is technically bearish with the risk remains towards the downside, as in the 1 hour chart, the price is developing below a bearish 20 SMA, while the technical indicators turned south below their mid-lines, after recovering from oversold territory.

    "In the 4 hours chart, the upside seems limited as the pair is now below the 20 SMA and the 200 EMA, both around 1.5165, while the technical indicators aim higher, but remain below their mid-lines."
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