FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the Pound managed to bounce after testing the 1.5000 region against the greenback, with the pair having been as low as 1.4992 during the European morning. The bounce can be attributed to technical buying interest around the critical psychological figure rather than because of some sudden strength in the British currency.
Key Quotes:
“News were light in the UK, with the only release being some credit figures for October, showing that consumer credit decreased to £1.178B against previous £1.261B, while less mortgages than-expected were approved in the same month down to 69.63K against 68.87K previous.
The GBP/USD recovered some 60 pips from the level, and the 4 hours chart shows that the recovery stalled below the 20 SMA that anyway has partially lost its bearish strength. In the same chart, the Momentum indicator has been rejected from its 100 level, while the RSI has recovered from oversold levels, but lost upward strength around 46, all of which maintains the risk towards the downside.”
(Market News Provided by FXstreet)