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GBP/USD: reversing risk of BoE delays -FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 9, 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 explained that the British Pound was among the most benefited by dollar's weakness, as the GBP/USD pair added over 150 pips this Wednesday.

    Key Quotes:

    "The pair fell below the 1.5000 level, as poor UK data spurred speculation that the BOE will have to delay a rate hike beyond the current estimate of the first half of 2016. Anyway, the Bank of England will have its monthly economic meeting, which may shed some light over the upcoming decisions.

    As for the technical picture, the pair has flirted with the 1.5200 level before pulling back some, but holds to its gains, and the short term picture is bullish, as in the 1 hour chart, the technical indicators aim higher in overbought territory, whilst the price has extended far above a strongly bullish 20 SMA.

    In the 4 hours chart, the price is currently developing above the 200 EMA and a daily descendant trend line coming from this November high at 1.5496, both converging at 1.5160, now the immediate support. In this last time frame, the technical indicators are partially losing their upward strength in overbought territory, still favoring additional advances in the pair."
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