7 Jan 2016
GBP/USD: bearish sentiment technically and fundamentally - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair continued falling, reaching a fresh 9-month low of 1.4599 in the American afternoon, and with the following bounce being quite limited, clearly reflecting selling interest continues to dominate the pair.
Key Quotes:
"The Pond came under pressure earlier in the day, following the release of the UK Markit services PMI for December, down to 55.5 from a previous 55.9. Soft data has been the main reason for the continued decline of the British currency during the last few months, and it seems investors will keep on selling it as long as the economy fails to signal clear improvement.
Technically, the 1 hour chart shows that the latest recovery remained capped by a bearish 20 SMA, while the technical indicators remain within bearish territory, far from announcing additional gains.
In the 4 hours chart, the technical indicators are turning slightly higher in oversold territory, while the 20 SMA has extended its decline further lower, now offering a dynamic resistance around 1.4690."
Key Quotes:
"The Pond came under pressure earlier in the day, following the release of the UK Markit services PMI for December, down to 55.5 from a previous 55.9. Soft data has been the main reason for the continued decline of the British currency during the last few months, and it seems investors will keep on selling it as long as the economy fails to signal clear improvement.
Technically, the 1 hour chart shows that the latest recovery remained capped by a bearish 20 SMA, while the technical indicators remain within bearish territory, far from announcing additional gains.
In the 4 hours chart, the technical indicators are turning slightly higher in oversold territory, while the 20 SMA has extended its decline further lower, now offering a dynamic resistance around 1.4690."