FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the British Pound fell down to a fresh 4-week low against the greenback, with the pair reaching 1.5412 before finally halting the slide.
Key Quotes:
“The Pound was weighed by weaker-than-expected British manufacturing data that fell in May by 0.6% after a fall of 0.4% in April. Industrial output, however, rose by 0.4% in the same month, above market’s expectations, boosted by oil and gas production.”
“The bad figures were attributed to the recent advance of the Pound that made local products more expensive for foreign buyers. The GBP/USD pair has barely recovered ground during the last trading hours, with the 1 hour chart showing that the 20 SMA has extended sharply above the current price, offering now a dynamic resistance in the 1.5510 region, whilst the technical indicators have barely corrected oversold readings before losing their upward strength.”
“In the 4 hours chart the RSI indicator has also turned higher, but remains in oversold territory, whilst the price has broken below the 61.8% retracement of its latest bullish run, at 1.5475, now the immediate resistance. As long as this level holds, the pair will remain exposed towards the downside, with a break below the 1.5400 figure pointing for a test of the 1.5200 region during the upcoming sessions.”
(Market News Provided by FXstreet)