FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair came under increasing downside pressure and fell down to 1.5055 during the European morning, on broad dollar strength and fears a rate hike in the UK will be delayed beyond the first half of 2016.
Key Quotes:
“The Pound however, bounced as in the Autumn Forecast statement, the 2016 GDP growth forecast was raised to 2.4% from previous 2.3%, and the pair retook the 1.5100 level as investors profited their long dollars. Trading around its daily high by the end of the day, the 1 hour chart shows that the price is advancing now above a mild bullish 20 SMA, whilst the technical indicators head higher above their mid-lines, favoring some additional gains.”
“In the 4 hours chart, the price is struggling to overcome a strongly bearish 20 SMA, while the technical indicators are about to cross their mid-lines towards the upside, still not confirming further gains.
The pair has an immediate Fibonacci resistance at 1.5135, the 23.6% retracement of its latest weekly decline, and it will take some follow through beyond it to confirm a rally up to the 1.5200 level.”
(Market News Provided by FXstreet)