GBP/USD headed to 1.44 on oil recovery? – FXStreet

FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the British Pound is still having a hard time when it comes to recover ground against the greenback, although the pair advanced up to 1.4406 this Thursday, helped by the release of the first estimate of the UK Q4 2015 GDP that came in at 0.5%, in line with the consensus forecast and above previous quarter reading of 0.4%.

Key Quotes:

“The report also showed that the services sector continues to lead the economic advance, whilst manufacturing remained flat, still a drag. From a technical perspective, the pair is looking painfully bullish, as intraday rallies continue to attract selling interest. Nevertheless, higher highs are seen whilst a daily ascendant trend line coming from 1.0478 contains the downside.

Short term, the 1 hour chart shows that the technical indicators have lost upward strength, now flat near overbought levels, while the price is above a bullish 20 SMA.

In the 4 hours chart, the technical indicators have turned lower from overbought levels, but the price remains above a bullish 20 SMA. Renewed buying interest beyond 1.4400, should see the rally extending, particularly if oil continues recovering ground.”

Valeria Bednarik, chief analyst at FXStreet explained that the British Pound is still having a hard time when it comes to recover ground against the greenback, although the pair advanced up to 1.4406 this Thursday, helped by the release of the first estimate of the UK Q4 2015 GDP that came in at 0.5%, in line with the consensus forecast and above previous quarter reading of 0.4%.

(Market News Provided by FXstreet)