FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained the techncial conditions of GBP/USD.
Key Quotes:
“The pair is pointing to complete a full 100% retracement to its September 4th low set at 1.5161, as it broke below the 23.6% retracement of the latest weekly bearish slump. Short term, the 1 hour chart maintains a strongly bearish tone, as the price failed to advance on a test of its 20 SMA, currently around 1.5340, whilst the technical indicators have accelerated their declines, although the RSI is around 21, advising it may be a bit too late to join the selling party.
In the 4 hours chart, the technical indicators also head sharply lower, entering oversold territory, maintaining the risk towards the downside, albeit with limited scope for further declines now. The pair has a strong static support at 1.5250, which should attract some short term buying interest on a first test. Nevertheless if the level is broken, further declines are seen towards the mentioned 1.5160 region.”
(Market News Provided by FXstreet)