GBP/USD: 1.5260 support challenges bears – FXStreet

FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the British Pound was hit by the second reading of the UK GDP for the first quarter of the year that resulted as previously estimated at 0.3% against expectations of an upward revision.

Key Quotes:

“The GBP/USD pair fell down to 1.5259, finding buying interest around the strong static support level, but unable to regain firmly the 1.5300 level on the posterior bounce.”

“The technical picture favors the downside, as the price is being capped by a bearish 20 SMA, whilst the Momentum indicator heads lower below 100, and the RSI indicator is also resuming its decline around 40, after correcting oversold levels.”

“In the 4 hours chart, the 20 SMA extended its decline and approaches the 200 EMA, both well below the current level and around the critical Fibonacci resistance at 1.5365, whilst the RSI indicator holds steady at oversold readings and the Momentum indicator lacks directional strength in negative territory, all of which, favors a new leg lower, particularly if the 1.5260 support gives up.”

Valeria Bednarik, chief analyst at FXStreet explained that the British Pound was hit by the second reading of the UK GDP for the first quarter of the year that resulted as previously estimated at 0.3% against expectations of an upward revision.

(Market News Provided by FXstreet)