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GBP/USD moves off lows, regains 1.4700

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - The pound printed lower lows against a stronger dollar on Monday, with GBP/USD falling briefly below the 1.4700 level during the American afternoon.

    GBP/USD failed to benefit from UK data, or disappointing US readings, and after being rejected from a peak of 1.4815 and dropped more than 150 pips toward a fresh 8-month trough of 1.4662. However, the pair managed to move back above 1.47 and it was last trading at 1.4710, still down 0.13% on the day.

    GBP/USD technical view

    “Technically, the 1 hour chart shows that the price is currently below a bearish 20 SMA, while the Momentum indicator heads lower within negative territory and the RSI indicator bounces from oversold readings, following price action rather than suggesting a stronger recovery”, says Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA capped the upside during the early advance and maintains a bearish slope, while the technical indicators have turned flat near oversold levels, suggesting some consolidation before a new leg south”.

    Bednarik locates next support levels at 1.4660, 1.4620 and 1.4585, while she places resistances at 1.4755, 1.4790 and 1.4835.
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