FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet noted that the GBP/USD pair accelerated its decline after breaking below the 1.5400 level, and despite the UK data released this Tuesday showed that the UK economy continues growing at a solid pace.
Key Quotes:
“According to the latest release, the UK Construction PMI reached 58.8 in October, as expected. Dollar’s demand however, is sending the pair to fresh weekly lows, and the technical readings anticipate further declines, given that in the 1 hour chart, the price was rejected from a bearish 20 SMA, whilst the technical indicators head sharply lower, and are currently approaching oversold levels. In the 4 hours chart, the price has extended below its 20 SMA whilst the technical indicators are about to cross their mid-lines towards the downside with sharp bearish slopes.”
“In this last chart, the 200 EMA stands at 1.5360, usually a strong dynamic support. Nevertheless, a break below it should see the decline extending towards 1.5300 during the upcoming hours, particularly if the US upcoming data results better-than-expected.”
(Market News Provided by FXstreet)