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10 Feb 2015
GBP/USD: Momentum indicator offers bearish continuation - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair ended the day for practically unchanged from its weekly opening.
Key Quotes:
"The pair made a weak attempt of recovery early in the Asian session, buy stalled at the 23.6% retracement of this month advance at 1.5266 the immediate resistance level for the upcoming hours."
"The pair however, set a 3-day low of 1.5200, which favors some further declines. On Tuesday, the UK will release its Industrial and Manufacturing Production readings for December, expected generally higher. A negative reading may weigh on the Pound, although price movements are expected to remain limited until Thursday, when the kingdom will release its Quarterly Inflation Report."
"In the meantime, the 1 hour chart shows that bears maintain the lead as the price develops below the 20 SMA and indicators maintain a mild bearish tone below their mid-lines."
"In the 4 hours chart, the 20 SMA converges with the 200 EMA at 1.5250, reinforcing the static Fibonacci resistance a few pips above it, while Momentum indicator has crossed its mid-line to the downside increasing chances of a bearish continuation, particularly on a break below 1.5190 the immediate support."
Key Quotes:
"The pair made a weak attempt of recovery early in the Asian session, buy stalled at the 23.6% retracement of this month advance at 1.5266 the immediate resistance level for the upcoming hours."
"The pair however, set a 3-day low of 1.5200, which favors some further declines. On Tuesday, the UK will release its Industrial and Manufacturing Production readings for December, expected generally higher. A negative reading may weigh on the Pound, although price movements are expected to remain limited until Thursday, when the kingdom will release its Quarterly Inflation Report."
"In the meantime, the 1 hour chart shows that bears maintain the lead as the price develops below the 20 SMA and indicators maintain a mild bearish tone below their mid-lines."
"In the 4 hours chart, the 20 SMA converges with the 200 EMA at 1.5250, reinforcing the static Fibonacci resistance a few pips above it, while Momentum indicator has crossed its mid-line to the downside increasing chances of a bearish continuation, particularly on a break below 1.5190 the immediate support."