GBP/USD neutral stance after recovery - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet noted and explained that the GBP/USD pair ended the day with some limited gains a few pips above the 1.5200 level, having set a lower low weekly basis at 1.5153 at the beginning of the European session, on the back of dollar's strength.

    Key Quotes:

    "Both economies released their October inflation data, with the UK reporting that the consumer price index fell by 0.1% year on year, and rose 0.1% from September, in line with market's expectations. Core inflation in the United Kingdom posted an annual rise of 1.1%, helping the Pound in bouncing from the mentioned low, albeit the numbers were not enough to restore investor's confidence after the latest BOE's economic policy announcement.

    Technically, the 1 hour chart shows that the neutral stance prevails, given that the price is moving back and forth around a horizontal 20 SMA and the 38.2% retracement of its latest weekly decline, whilst the technical indicators have turned back lower after a tepid advance in positive territory.

    In the 4 hours chart, the technical indicators remain stuck around their mid-lines, whilst the 20 SMA is also horizontal around the mentioned Fibonacci level, failing to offer a clear directional picture for the upcoming sessions."
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